Incapacity rule doesn't seem fair

wassup

It's a massive blow to us as basically for past number of years I have been self employed after being made redundant from a government job. My wife helped me in my small business and I paid her the most I could without having to pay tax and NI. Then i got a tax inquiry which decided I had underpaid massively and in order to pay the tax and penalties we had to sell our house. We closed the business and my wife took a local job instead but the stress and worry of the tax enquiry has caused my wife to become unwell. She has menieries disease which evidence shows can be started by stress.

So the governmet made me redundant unfairly (another story) causing stress, then we started a busiiness, the government started an inquiry and took all our money (more stress), and now when my wife asks for some help the goverment says no.

What a great country we live in.

foreign_correspondent

I have just started some part time work after a break from working. I have claimed no benefits, and lived off my savings, and have been able to travel too.
However, I have just started some work (part time) and noticed no NI contributions were coming out. I rang the NI office, and was told this was because my income is too low. This will affect my pension and benefits entitlement.
I enquired about paying the contributions myself and was told I could, at just over £7 a week, but that this would only affect my pension entitlement, and that if I need to claim Incapacity Allowance or JSA in the next 2 years I will still not be entitled to!
How does this work?? I can pay the money but I dont get the advantages? Hopefully I will not have to claim either of these benefits, but you never know, and I would happily pay the contributions to ensure this.

cifpower

You could claim JSA income-based if you have no income or little savings. The strange this is, if you claim IB or JSA(CB) you do not get free prescriptions, eye tests or dental treatment but if you claim IS or JSA(IB) you do as well as milk tokens.

seven-day-weekend

foreign_correspondent wrote: »

I have just started some part time work after a break from working. I have claimed no benefits, and lived off my savings, and have been able to travel too.
However, I have just started some work (part time) and noticed no NI contributions were coming out. I rang the NI office, and was told this was because my income is too low. This will affect my pension and benefits entitlement.
I enquired about paying the contributions myself and was told I could, at just over £7 a week, but that this would only affect my pension entitlement, and that if I need to claim Incapacity Allowance or JSA in the next 2 years I will still not be entitled to!
How does this work?? I can pay the money but I dont get the advantages? Hopefully I will not have to claim either of these benefits, but you never know, and I would happily pay the contributions to ensure this.

Because you do not earn enough to pay Class One contributions (which count towards State Pension, IB and JSA), you can pay Voluntary Contributions, but these only count towards State Pension.


You may be able to claim JSA (income based) however, if you are out of work.

wassup

seven-day-weekend wrote: »

You may be able to claim JSA (income based) however, if you are out of work.

You cant claim job sekers allowance if you are too ill to work.

cifpower

wassup wrote: »

You cant claim job sekers allowance if you are too ill to work.

But you can get Income Support at the same rate with all the passported benefits.

seven-day-weekend

wassup wrote: »

You cant claim job sekers allowance if you are too ill to work.

I was replying to foreign correspondent, who AFAIK, isn't sick.

Oldernotwiser

wassup wrote: »

My wife helped me in my small business and I paid her the most I could without having to pay tax and NI. .

Although I'm sorry for your situation, it seems that by trying to beat the system in one way, you have made a rod for your own (or your wife's ) back! I'm not suggesting that this was illegal but it seems to me that you can't have it both ways; avoiding paying tax and NI but expecting to receive the benefits that you get when you have paid.

TITEASCRAMP

Oldernotwiser wrote: »

Although I'm sorry for your situation, it seems that by trying to beat the system in one way, you have made a rod for your own (or your wife's ) back! I'm not suggesting that this was illegal but it seems to me that you can't have it both ways; avoiding paying tax and NI but expecting to receive the benefits that you get when you have paid.

She wasnt avoiding paying tax and ni she wasnt even earning enough to pay them. Thats how little she was on. Rod for your own back indeed. Shame on you

Oldernotwiser

I specifically said that they weren't doing anything wrong! The OP said

"My wife helped me in my small business and I paid her the most I could without having to pay tax and NI. ."

which I take to mean what it says; he chose to pay his wife an amount that meant that she didn't have to pay tax and NI. That was probably a sensible business decision at the time but it means that now his wife is ineligible for contributions based benefits. As I said, you can't have it both ways.