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Do H M R C take an interest in sole traders

(39 Posts)
MrsMacbeth Sun 27-Jan-19 16:06:45

I've been a SAHM for 14 years now (not entirely by choice but it's a long story)

No longer get pension credits via Child Benefit so went to "sign on". Was told that I'd have to spend 30(?) hours per week looking for work.

I'm not looking for proper work but want to pay NIC. Could I set up as self employed and charge my DH's business for "admin work" or would HMRC not like that?

I'm not trying to do anything dodgy - I just want to earn NIC.

bsc Sun 27-Jan-19 16:11:47

You might fall foul of regulations that cover people that only work for one "client" being seen by HMRC as employees and not suppliers, and thus your DH's company becoming liable for your tax, NI, etc.

MrsMacbeth Sun 27-Jan-19 17:01:08

How would HMRC find out? Surely they don't pay that much attention to sole traders earning a pittance?

TulipsInbloom1 Sun 27-Jan-19 17:02:01

How come the pension credits stopped? Are your kids too old for CB?

Badbadbunny Sun 27-Jan-19 17:12:41

How would HMRC find out? Surely they don't pay that much attention to sole traders earning a pittance?

They randomly pick self assessment returns for compliance checks.

They have computer algorithms which check self assessment declarations against other information, such as records from other govt depts, credit referencing agencies, industry statistics, etc. and investigate any anomalies or contradicting information.

TulipsInbloom1 Sun 27-Jan-19 17:18:33

I'm not trying to do anything dodgy

Except you are. Aren't you.

BaconPringles Sun 27-Jan-19 17:19:56

But you are, you’re hoping HMRC won’t spot check you

Trust me they do give a shit

myhamsteratefreddiestarr Sun 27-Jan-19 17:24:16

Pension credits by CB stop when your youngest child reaches 12.

You can pay Class 3 voluntary to make up any gaps in the past 6 years.

If you are a carer on Carers allowance, or unpaid, then you can get credits.

You can't work soley for your DH for 30 hours a week and be self employed.

You could be an employee and be paid £116 a week (2018/19) and get credits, so say 15 hours at NMW, or less hours at a higher rate. You would need to increase it slightly each year to earn enough. (It's £118 in 2019/20)

myhamsteratefreddiestarr Sun 27-Jan-19 17:25:40

www.gov.uk/check-national-insurance-record

Here is a link to check your NIC history

TulipsInbloom1 Sun 27-Jan-19 17:29:20

Could you get a job?

MrsMacbeth Sun 27-Jan-19 18:20:56

Thanks for replies.

Very useful.

bsc Mon 28-Jan-19 00:50:26

HMRC randomly audit people. You wouldn't be able to provide invoices for any companies other than DH's.

BlueWonder Mon 28-Jan-19 00:56:33

So you don't want to work, you don't want to look for work, you just want to be given a free pension that ultimately will be paid for by other working people?

theworldistoosmall Mon 28-Jan-19 01:01:05

Of course, they do.
I remember getting audited years ago. They poured through everything.

Nothing dodgy, tell yourself that. Or do the honest thing, pay your own NI or get an actual job.

BritInUS1 Mon 28-Jan-19 01:18:37

You need to work legitimately, yes they do check

MacarenaFerreiro Mon 28-Jan-19 08:12:44

I'm self employed as a sole trader. I work very part time and rarely pay income tax especially in recent years as the personal allowance has been rising.

However, I'm scrupulously honest with my tax return. Last thing I want or need is hassle from HMRC asking to trawl through records for the past 7 years or something. I have all the invoices, all the payments, all the records of work. But it's still something I want to avoid at all costs.

You can't just set yourself up as self-employed, not do anything and fiddle the system. Furthermore, if your DH is also completing a tax return for his business, your scam would impact him too.

Just do proper self-employed work. Or get a job.

ImHeartbroken Mon 28-Jan-19 09:32:29

Message withdrawn at poster's request.

ImHeartbroken Mon 28-Jan-19 09:42:49

Message withdrawn at poster's request.

Whatdoyouknowwhenyouknownowt Mon 28-Jan-19 09:45:28

Your actual question is will they catch me?

Somewhereovertheroad Mon 28-Jan-19 10:04:14

Short answer is yes they do and it will lead them to look at your Dh's company too.

MrsMacbeth Mon 28-Jan-19 11:54:56

I don't want anyone else to pay my pension, I'm looking how to pay NIC through household income.

I am looking for work but, due to circumstances I don't feel obliged to go into here, I'm very limited as to what I can apply for, hence I don't want to waste employers' time applying for jobs just to satisfy the job centre's criteria of spending 30 hours per week actively seeking work.

I'd hoped to be able to access some return to work assistance/updating skills from the job centre but was told they had nothing to offer.

Anyway, many thanks for constructive replies.

MrsMacbeth Mon 28-Jan-19 11:59:39

That isn't just dodgy, that is fraud

Understood now. I know several women who "work" for their husbands and claim a wage to offset their spouse's tax payments. They never set foot in the office but "work from home" and I do wonder if HMRC will catch up with them.

MrsMacbeth Mon 28-Jan-19 12:04:39

Then there is the concept of fundamental dishonesty. And you're asking if it's OK?

Yes, because this is a discussion forum for parents to offer advice and support and I'm asking questions in an attempt to make myself less vulnerable. Many woman are in this position through no fault of their own. I'm not Amazon, Starbucks or Jacob Rees Mogg FFS!

Comefromaway Mon 28-Jan-19 12:06:15

I'm not looking for proper work but want to pay NIC. Could I set up as self employed and charge my DH's business for "admin work" or would HMRC not like that?

This is actually an area that HMRC have specifially targeted in recent years as its commonly used to reduce the spouse's profitability/tax bill. They randomly select people and you have to prove firstly that you are actually doing the work and secondly that you shuld not be employed on PAYE rather than self employed.

LonnyVonnyWilsonFrickett Mon 28-Jan-19 12:07:52

You can make voluntary NI contributions to cover any gaps...

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