Running a Business Purely for NIC

[Efbe]

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?

[ianrb]

You can make voluntary contributions without the hassle of keeping a business in existance.

https://www.gov.uk/voluntary-national-insurance-co...

[anonymous-user]

I've been wondering this very same thing. The voluntary contributions mentioned above seem to be fill historical gaps whereas I would like to "pay as I go". Is there a mechanism for this when semi retired with income from private pensions etc?

[Efbe]

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?

[Trailhead]

£8,060 is the most tax effective amount (if the business makes adequate profits).

You can push any other profits into pensions for yourselves too, lowering your corporation tax.