Could my wife provide us services on a self employed basis and put all her earnings into a pension

shinytop

Silvertabby said:

Can't be that simple.  Otherwise, those of us who retired early and need to pay voluntary Class 3 NI contributions to top up our State pensions could claim to be 'self employed housekeepers' - and pay Class 2.

I agree, but it seems that you can do the same thing by setting up a small business, for example, selling a few bits of tat on eBay.  You would be a 'self employed home based retailer'. 

comeandgo

Silvertabby said:

Can't be that simple.  Otherwise, those of us who retired early and need to pay voluntary Class 3 NI contributions to top up our State pensions could claim to be 'self employed housekeepers' - and pay Class 2.

Yup, I clean for my daughter and mother, not much profit in it but self employed.

Silvertabby

comeandgo said:

Silvertabby said:

Can't be that simple.  Otherwise, those of us who retired early and need to pay voluntary Class 3 NI contributions to top up our State pensions could claim to be 'self employed housekeepers' - and pay Class 2.

Yup, I clean for my daughter and mother, not much profit in it but self employed.

But that's different - you are working for other people, even though they are family.  

Silvertabby

shinytop said:

Silvertabby said:

Can't be that simple.  Otherwise, those of us who retired early and need to pay voluntary Class 3 NI contributions to top up our State pensions could claim to be 'self employed housekeepers' - and pay Class 2.

I agree, but it seems that you can do the same thing by setting up a small business, for example, selling a few bits of tat on eBay.  You would be a 'self employed home based retailer'. 

Don't you have to have a minimum turnover?

michaels

Silvertabby said:

shinytop said:

Silvertabby said:

Can't be that simple.  Otherwise, those of us who retired early and need to pay voluntary Class 3 NI contributions to top up our State pensions could claim to be 'self employed housekeepers' - and pay Class 2.

I agree, but it seems that you can do the same thing by setting up a small business, for example, selling a few bits of tat on eBay.  You would be a 'self employed home based retailer'. 

Don't you have to have a minimum turnover?

There is something for tax credits about minimum wage times the number of hours you are claiming to work but I think in general self employed as no minimum hours or turnover?

comeandgo

Silvertabby said:

shinytop said:

Silvertabby said:

Can't be that simple.  Otherwise, those of us who retired early and need to pay voluntary Class 3 NI contributions to top up our State pensions could claim to be 'self employed housekeepers' - and pay Class 2.

I agree, but it seems that you can do the same thing by setting up a small business, for example, selling a few bits of tat on eBay.  You would be a 'self employed home based retailer'. 

Don't you have to have a minimum turnover?

No minimum as long as you are not claiming any benefits.   

zagfles

No.

https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm4155

michaels

zagfles said:

No.

https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm4155

The wording particularly mentions spouse (or other family member) so basically we just need to get divorced and it would be OK....

ratechaser

michaels said:

zagfles said:

No.

https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm4155

The wording particularly mentions spouse (or other family member) so basically we just need to get divorced and it would be OK....

Couldn't you just have a reciprocal arrangement with a neighbour or local friend to provide cleaning services to each other (which of course you would actually do...  )

Marcon

shinytop said:

Silvertabby said:

Can't be that simple.  Otherwise, those of us who retired early and need to pay voluntary Class 3 NI contributions to top up our State pensions could claim to be 'self employed housekeepers' - and pay Class 2.

I agree, but it seems that you can do the same thing by setting up a small business, for example, selling a few bits of tat on eBay.  You would be a 'self employed home based retailer'. 

That's completely different - and if you are only selling a few bits of tat you're unlikely to exceed the £1,000 profit you're allowed to 'earn' before tax etc kick in.