a wife workign for her husband question...

Deals_2

i remember reading about a wife doing work for her husband . she did not get paid as just doing paperwork etc. i remember reading somethign about still getting NIC credits for earnings between a certain amount.
1) how does this work exactly?
2) is this solely for married couples? what about those living together and when in the same situation?
thanks in advance.hope the question am askign is clear!!!

Elaine_Wilson

Anyone who is employed and earns more than the "Lower Earnings Limit" will have that contribution year counted towards the minimum needed for a state pension. This applies to everyone, not just partners or wives.

There is another limit, however, called the "Primary Threshhold". Earnings above this limit are subjected to national insurance at 11% for the employee and 12.8% for the employer. Earnings between the limits have a zero rate applied.

The LEL at the moment is £95 per week and the PT is £110. So this gives rise to a nice little tax aviodance scheme. If the person is paid between these limits then no national insurance liability arises but the year can count towards a pension.

Of course, there are some hurdles to clear first, the main one being that the work done must warrant the level of pay, but you should get the general idea from this.

Deals_2

but not got paid as obviously he did not have the money how do i sort this out. Do i still need to pay the class 2 national insurance contributions. I am obviously self employed for him too. thanks in advance.

Elaine_Wilson wrote: »

Anyone who is employed and earns more than the "Lower Earnings Limit" will have that contribution year counted towards the minimum needed for a state pension. This applies to everyone, not just partners or wives.

There is another limit, however, called the "Primary Threshhold". Earnings above this limit are subjected to national insurance at 11% for the employee and 12.8% for the employer. Earnings between the limits have a zero rate applied.

The LEL at the moment is £95 per week and the PT is £110. So this gives rise to a nice little tax aviodance scheme. If the person is paid between these limits then no national insurance liability arises but the year can count towards a pension.

Of course, there are some hurdles to clear first, the main one being that the work done must warrant the level of pay, but you should get the general idea from this.