National Insurance

[EmsTomot]

Can someone please give me a bit of advice. My husband set up his own lettings business eight months ago and although it is going from strength to strength, he and his business partner have decided to borrow more money to put into it.
His business partner has suggested he hold six months wages back from the loan in order to avoid income tax for six months. I am not sure this is allowed, apart from the fact he will have six month gap on his national insurance payments, which his partner says he can catch up on.......?
The main aim of this suggestion is to save the company money but it seems a bit dodgy to me....

I'm not sure of the legalituies of avoiding tax this way,but do know that if your dh doesn't pay his NI before a specified time,he could be unable to claim sick pay in future & it could affect his state pension.

Surely it doesn't matter how the wages are actually paid, as in the loan will go into the business account and then can be spent on whatever they like.

Also, they could just pay your husband the minimum amount to just get into tax & NI so that he doesn't lose anything. And then give him a large bonus after 6 months or something to make up what he should have had. Also depends if this is an Ltd co or partnership.