State Pension for Wife

bigtel_2

Hi,

After some advice on how my wife can claim a state pension when she reaches that age.

She is Italian and lived here for 5 years, aged 29. She did work for 6 months during this time.

From what I'm reading she needs 30 years worth of contributions or credits?

We don't claim any benefits.

She has just started her own online business which she will run from home but she won't make much from this.

When she applies to become a sole trader she has two options I believe. Voluntary contributions to pay NI or as she won't be making over £10,000 she is allowed no to pay them due to small earning.

I don't not want to pay them if these would help with the credits if that makes sense?

Can anybody offer any advise as I want to act now rather that wait.

Thanks

atush

She can claim combined with her itlaian stat pension when she comes to retire.

In the mean time, anyone who is SE can pay voluntary nics/. Yes, if your earnings are low enough you dont HAVE to pay them, but them you dont get credit for those years so I suggest she does.

When/if you have children, register the CB in her name, this gives her nics.

And she will need 35 years for a full basic SP, and 10 years min Nics for any SP.

sleepless_saver

bigtel wrote: »

Hi,


When she applies to become a sole trader she has two options I believe. Voluntary contributions to pay NI or as she won't be making over £10,000 she is allowed no to pay them due to small earning.

£10000 is the personal tax allowance, not the NI threshhold which is lower, see link. It's in her interests to pay the NI given the new pensions system from 2016 as she won't be able to rely on your contributions, plus it's a bargain for low earning self employed.

bigtel_2

Thank both of you for the replies

atush wrote: »

When/if you have children, register the CB in her name, this gives her nics.

Is there like a points system where she would need a certain amount of points?

Would she be able to stop paying the NI as a sole trader while the child receives it's benefit or it is better to pay and receive double credits?

Self employment can be confusing at times!

sleepless_saver

There's no advantage in paying for anything more than once, but if her self employed income is above certain limits she will have to pay that anyway.

Child benefit receipt pays class 3 NI and self employment is class 2, she can have a look on the HMRC website for what these mean.