Do H M R C take an interest in sole traders

[MrsMacbeth]

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.

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.

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

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

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.

I'm not trying to do anything dodgy

Except you are. Aren't you.

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

Trust me they do give a shit

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)

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

Here is a link to check your NIC history

Could you get a job?

Thanks for replies.

Very useful.

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

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?

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.

You need to work legitimately, yes they do check

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.

Your actual question is will they catch me?

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

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.

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.

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!

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.

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

I often put through what used to be known as "wife's wages" for various clients, but it is always a sensible amount with a sensible hourly rate and justifiable, ie the wife runs errands collecting parts, does all of the invoicing and bookkeeping etc.

The wages must also be physically paid over as well, so if you say the wife earns £100 a week from the business, then she is paid £100 a week that is traceable, ie by standing order.

It is widely used by accountants to use up some of the wife's personal allowance when she does not work, but as I say, it still has to be sensible and justifiable.

You would need to run a PAYE scheme if you want to be accredited for earning £116 a week or otherwise they won't have a record of it.

It all depends on what your husband's business is and if you could actually help in it. If all you do is write out one invoice a week for him, then HMRC could disregard it if they ever investigated.