Housewife NI Credit

mediumchung

Hello all.

My wife is currently a home staying mum and she does not earn any NI credit.

I know that in UK a mum can earn NI credit by claiming child benefit, but this is not applicable to us as we are immigrants and our Visa does not allow us to use any public funding.

We still have 5 years to go before settlement so it is a pity if she has 5 years of gap in NI credit.

I am wondering if my wife can register herself as self-employed and declare the housekeeping money I paid her every month as "income"? Such that she can pay Class 2 NI to earn credit.

We are happy to pay tax and NI contribution but just not sure if this would be classified as a fraud.

Appreciate if anyone here could give some advices.

Thank you.

SVaz

No, of course she can’t.
The only way it’s possible is if you run a business - you could employ her for admin work and would have to register as her employer and run proper payroll, plus pay her over £124 a week in order for her to get NI credit.  

NedS

No, HMRC do not permit you to pay your spouse for general household "work".

The best thing she can do is to get a job earning above the lower threshold of £124/week.

QrizB

Your plan isn't going to fly, as explained above.

However, if your wife is able to run a business trading from home (via eBay, for example, or Etsy, or Vinted) she could still register as self-employed. This won't directly earn her NI credits unless she makes £6725 a year, but will let her make voluntary Class 2 payments.

JoeCrystal

What about Class 3? Is there a reason your wife cannot pay voluntary Class 3 National Insurance?

mediumchung

QrizB said:

Your pan isn't going to fly, as explained above.

However, if your wife is able to run a business trading from home (via eBay, for example, or Etsy, or Vinted) she could still register as self-employed. This won't directly earn her NI credits unless she makes £6725 a year, but will let her make voluntary Class 2 payments.

Thank you for your advice. That sounds to be the most cost effective way to earn NI credit.

mediumchung

JoeCrystal said:

What about Class 3? Is there a reason your wife cannot pay voluntary Class 3 National Insurance?

I have also considered this but £17.45 a week is far too much compare to Class 2 NI. We will only go for this if there is no way to make her self-employed. From the reply of QrizB I guess it would be better for my wife to start selling some handcrafts in Etsy.

Thank you.

Silvertabby

Class 3s may cost more than Class 2s - but they are still excellent value if all else fails.

QrizB

mediumchung said:

QrizB said:

Your pan isn't going to fly, as explained above.

However, if your wife is able to run a business trading from home (via eBay, for example, or Etsy, or Vinted) she could still register as self-employed. This won't directly earn her NI credits unless she makes £6725 a year, but will let her make voluntary Class 2 payments.

Thank you for your advice. That sounds to be the most cost effective way to earn NI credit.

I wish your wife good luck with her business!

Mrs QrizB is a self-employed creative type, and has been for almost a decade. 2022-23 was the first year when her profits exceeded the £6725 threshold and we didn't need to pay voluntary Class 2s.