Being paid by Sole trader husband

molerat

NannaH said:

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

About 40 weeks a year credits then,  what are you going to fill those missing NI weeks ?

zagfles

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. 

That only gets you class 3 NI, so state pension, class 1 is better as that'll also get you stuff like SSP, JSA, bereavement benefits etc. If you earn just above the LEL there is no employee or employer NI payable.

NannaH

The claim form doesn’t ask how much ( or how little)  childcare you do,  it could be daily or once a year for all they know.  
I’ve already had a full year added for 20-21,   the form only contains my details,  my Grandson’s name and my Daughter’s details,  as she’s the one giving me the credits,  which we both sign.  

molerat

NannaH said:

The claim form doesn’t ask how much ( or how little)  childcare you do,  it could be daily or once a year for all they know.  
I’ve already had a full year added for 20-21,   the form only contains my details,  my Grandson’s name and my Daughter’s details,  as she’s the one giving me the credits,  which we both sign.  

https://www.gov.uk/government/publications/national-insurance-credits-for-adults-who-care-for-a-child-under-12-fact-sheet/specified-adult-childcare-credits-fact-sheet

2. What you’ll get

Specified Adult Childcare credits will help build up your National Insurance contributions. This means:

• you will receive a Class 3 NI credit for each week or part week you cared for the child (Class 3 NI credits help to build entitlement to the State Pension and, until April 2017, certain bereavement benefits)
• it can help to stop gaps in your National Insurance record

The form asks for the periods you cared for the child.  You can have several  weekly periods in a year.  Claiming for a whole year could technically be seen as fraud but it seems that no one actually checks.

DullGreyGuy

Jeremy535897 said:

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

As the judge said...

Mr Simon says whether the sums have actually been paid or not to the person entitled to the salary does not determine the question whether the payer is entitled to deduct them in his business accounts, and I quite agree. 

If you read the whole judgement you'll find there were a host of issues raised and who's account it was paid into was just one facet of that. My ex didnt have a bank account when we first met as her employer paid cash, her landlord lived in the building so collected rent by cash and utilities were on pre-paid meters etc. When she got her first job they required bank details so she just gave mine. Clearly less of a mater as an unrelated company was paying to her nominated recipient but illustrates that some do have their salaries paid to others and doesnt invalidate that its their salary and so tax deductible for the employer.

As to joint accounts... you dont own whats in it 50%/50%, each party can individually take 100% out... its the mirror of joint and severally liable.  

Jeremy535897

I do not see the point of arguing that payment by X of £100 into a joint account of X and Y constitutes a payment by X of the whole £100 on the technicalities of joint ownership, when the way to avoid it is extremely simple: pay it into an account for the working spouse.