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

So can I pay (out of unearned income) for this tax year and the next tax year? And so on until I am.able to get a "proper job"?

myhamsteratefreddiestarr

DH started working for himself in 2009 after being made redundant following the financial crash. We got advice from a business start-up firm who were partly funded by the govt. They advised us to set up as a partnership so DH could use my tax allowance. The adviser told us he was a partner in his wife's cake making business!

Is that a possible route?

yes - here's the link

And you can transfer some of your tax allowance to DH if you're married, yes.

If you are actually doing the work then its fine - ie if you do a couple of days a week on average for husbands paperwork and or accounts then just get his business to pay you for that at the going rate and he will pay NI as part of that. Even if you don't reach NI levels you still get credits etc

I'm not trying to do anything dodgy - I just want to earn NIC.
Then
How would HMRC find out?

I am most certainly not helping

You know you can just ring hmrc and ask them about making NI contributions towards your pension?

Rather than lying and pretending you're doing something you're not (oh, and paying more tax than you should be)

OP, I stated in my first post yesterday that you can pay Class 3 voluntary to make up any gaps. If you click on the link I posted then, you can follow it to see your NIC record and see what gaps you have, and you can pay 6 years if applicable.

You could be in partnership with your DH. Profits can be split in various ratios, and you should draw up a partnership agreement that states everything. Your personal allowance could then be used to cover your share of the profits. If you earn below the Class 2 NIC limit, you can opt to pay voluntarily, a box on the tax return allows that. That costs £148.20 for the last tax year.

However, once in partnership, you can also become liable for debts etc, so you would need professional advice on this. I know someone went into a partnership with their spouse (they had gone to a different accountant who advised this), the marriage then broke down the following year and it caused a lot of problems that wouldn't have been there if they had continued as a sole trader.

Your husband's accountant should be able to advise you on all of this and what is the best option for you and for the business.

@planespotting I am most certainly not helping

Oh right, thanks for letting me know.

hamster - thanks. I don't have any gaps in the past 6 years as my youngest has just turned 12 so I got pension credits (though no money). It's the future I'm worried about. I will look in to going on PAYE /partnership via DH.

Honestly save yourself the faff and just pay class 3 contributions. You don’t need to be working (or pretending to work)

I thought you could pay to top up missed years for NIC payments. You can request a copy of your NI record and see which years aren’t full.

Also, could you not actually do the work for your husband? Or could he put you on PAYE and give you a job?

Agreed, checking through the rules I think you can call and ask how much voluntary class 3 contributions will be and make them regardless of your situation. (I've just started paying class 2 due to my youngest turning 12, but have also started genuine self-employment although not yet at compulsory payment thresholds).

Yes, you can be employed by your dh, I have been at times.
As long as you declare your earnings there's no problem.
I ended up getting more tc when I did my dh bookkeeping.