Running a Business Purely for NIC
Discussion
Hi All
Currently my wife runs a business which is doing nicely, but she is likely to wind it down in the next year or so.
When the main business is finished we could keep the business open, continue some minimal online trading in old stock and keep on paying her £500 a month to hit the NIC threshold. I would like to ensure she eventually has enough contributions to get a state pension.
Would this be legit or frowned upon, or am I missing something?
Currently my wife runs a business which is doing nicely, but she is likely to wind it down in the next year or so.
When the main business is finished we could keep the business open, continue some minimal online trading in old stock and keep on paying her £500 a month to hit the NIC threshold. I would like to ensure she eventually has enough contributions to get a state pension.
Would this be legit or frowned upon, or am I missing something?
You can make voluntary contributions without the hassle of keeping a business in existance.
https://www.gov.uk/voluntary-national-insurance-co...
https://www.gov.uk/voluntary-national-insurance-co...
Voluntary contributions would be £25 (I think) a week, so £1300 a year.
Having a business pay you at just over the NIC threshold (LEL - £490 per month) would be cost free as businesses/individuals pay above the primary/secondary threshold (£680 per month).
Seems like a bit of a loophole unless I have missed something?
Having a business pay you at just over the NIC threshold (LEL - £490 per month) would be cost free as businesses/individuals pay above the primary/secondary threshold (£680 per month).
Seems like a bit of a loophole unless I have missed something?
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