Housewife NI Credit

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.

Comments

  • SVaz
    SVaz Posts: 248 Forumite
    First Post
    edited 8 January at 10:41AM
    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
    NedS Posts: 3,612 Forumite
    First Anniversary First Post Name Dropper
    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
    QrizB Posts: 13,822 Forumite
    First Anniversary First Post Photogenic Name Dropper
    edited 8 January at 1:41PM
    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.
    N. Hampshire, he/him. Octopus Go elec & Tracker gas / Shell BB / Lyca mobi. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 30MWh generated, long-term average 2.6 Os.
    Taking a break, hope to be back eventually.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs.
  • JoeCrystal
    JoeCrystal Posts: 3,013 Forumite
    Name Dropper First Anniversary First Post
    What about Class 3? Is there a reason your wife cannot pay voluntary Class 3 National Insurance?
  • 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.
  • 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
    Silvertabby Posts: 9,018 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Class 3s may cost more than Class 2s - but they are still excellent value if all else fails.
  • QrizB
    QrizB Posts: 13,822 Forumite
    First Anniversary First Post Photogenic Name Dropper
    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.
    N. Hampshire, he/him. Octopus Go elec & Tracker gas / Shell BB / Lyca mobi. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 30MWh generated, long-term average 2.6 Os.
    Taking a break, hope to be back eventually.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards