Being paid by Sole trader husband

NannaH

He will be paying me £500 a month for admin and book keeping, so less than the LeL , he won’t have to register as an employer / pay NI etc. and after March I will have no other income so that’s when he will start.
Do I have to do self assessment to declare my earned income?   

 I claim specified adult NI credits via my Daughter for childcare so the gaps in my NI record will be filled. 

MalMonroe

Hi, here's some info from the government - 

https://www.gov.uk/contract-types-and-employer-responsibilities/employing-family-young-people-and-volunteers

If you need further information you could login to your personal HMRC account and send them a message. In my experience, they don't take long to respond. 

NannaH

You do not need to register

However, you’ll need to register if any of your employees:

• start earning more than £123 a week
• get a pension or another job while still working for you
• start getting any expenses or benefits

You’ll still need to keep records of what you pay them.

That’s literally the only information I can find and it pertains to the business owner,  not the worker. 

Dazed_and_C0nfused

NannaH said:

He will be paying me £500 a month for admin and book keeping, so less than the LeL , he won’t have to register as an employer / pay NI etc. and after March I will have no other income so that’s when he will start.
Do I have to do self assessment to declare my earned income?   

 I claim specified adult NI credits via my Daughter for childcare so the gaps in my NI record will be filled. 

Why do you think that you would be required to complete a Self Assessment tax return?

Ignoring small amounts of untaxed interest do you have any other taxable income?

How much will he pay you in the period from now until 5 April 2023?

NannaH

He won’t pay me until April,  I’ll have used up most of my PA this year by taking drawdown from a Sipp until March. 

I’m surprised at not having to inform hmrc of earned income, even if it is below the LeL.    I’ll have less than £1k in savings interest,  probably around £750. 

In a previous job,
I was paid less than the LeL but it was still on my p60 every year. 

DE_612183

I would presume if you don't tell HMRC you get any NI credits?

NannaH

You don’t get NI credits when you earn less than the LeL of £123 a week.
I already claim credits via my Daughter for doing childcare for my Grandson as I need 5 more years NI conts 😉
The whole reason for me getting less than £123 is so my husband doesn’t have to register as an employer and pay NI etc. by running a payroll.
Paying me £6k will save him £2000 a year in tax and NI.   It’s all perfectly legal as long as I’m 1. Actually working for a proper rate of pay ( so £10.50 an hour for 11 hours a week). 
2. He pays me into my bank account rather than our joint account. 

DullGreyGuy

You dont need to be working for a proper rate, NMW doesnt apply to cohabiting family and nor does it have to be paid into your non-joint account. All you need to be able to evidence is that you are actually doing work and that you arent being paid an excessive rate. 

molerat

NannaH said:

You don’t get NI credits when you earn less than the LeL of £123 a week.
I already claim credits via my Daughter for doing childcare for my Grandson as I need 5 more years NI conts 😉
The whole reason for me getting less than £123 is so my husband doesn’t have to register as an employer and pay NI etc. by running a payroll.
Paying me £6k will save him £2000 a year in tax and NI.   It’s all perfectly legal as long as I’m 1. Actually working for a proper rate of pay ( so £10.50 an hour for 11 hours a week). 
2. He pays me into my bank account rather than our joint account. 

So you care for the child for a part of every one of the 52 weeks in the year when they are at work ?

NannaH

I do at least 20 hours a week of childcare,   other than school holidays, why?  

Jeremy535897

DullGreyGuy said:

You dont need to be working for a proper rate, NMW doesnt apply to cohabiting family and nor does it have to be paid into your non-joint account. All you need to be able to evidence is that you are actually doing work and that you arent being paid an excessive rate. 

You are correct regarding the inapplicability of NMW (unless there is a company rather than an individual employer). I am not so sure about the joint bank account though. The question is whether the husband can say that half the pay has actually been paid by him, as he still retains ownership of half of it by virtue of his share of the joint bank account. See:
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37735