It wouldn't make sense to do so.
It would seem foolish for your father-in-law to be earning cash in hand and not declaring it because it's probably below the personal allowance if he's struggling - or he'd be eligible for top-ups from universal credit.
But he has a reckoning coming at some point - he either has to declare it now or potentially face questions when he has to stop working and claim the state pension or pension credits. If you're planning to give him money then you don't want him to have assets when he reenters the tax system - you've given him £10,000 into some pension and the tax man says "thank you very much, we'll take that".
You can just save in your own name and give your father-in-law money as and when you deem it appropriate. If you want to save £xxx into a "pension" for him then save it into your own S&S ISA and give him the money later.
undoubtedly the most helpful answer to my question, thank you. he has no assets apart from his 20 year old ford transit connect so that’s not a massive concern, thank you mate👍
Googling "Can you contribute to someone else's pension" and clicking on the first link explains it pretty well.
Alternatively, he could stop evading tax and pay his fair share to society....
Generally speaking, "cash in hand" is taken here to mean that someone doesn't declare their earnings.
If you earn £8000 or £10,000 a year then that's less than the personal allowance (meaning you don't earn enough to pay income tax) but you still have to declare it.
If he's self-employed then he should probably be paying national insurance, which is like [£3.50 a week](https://www.gov.uk/self-employed-national-insurance-rates).
If he's declaring his income then he'll probably be eligible for universal credit.
If he is, as you say, an incredibly hard worker, it seems odd that he earns so little that he doesn’t owe any tax. If he earns the minimum hourly wage (£11.44 per hour), works 40 hours per week, and has 6 weeks off during a year, he would earn £21k per year, whereas the personal allowance is only £12,750.
Hi /u/Real_Cranberry_4462, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/pensions/
____
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You can pay into someone else's pension - I am doing that at the moment but they had to create the pension account; I found the Penfold pension appropriate in this case.
Edit: as he doesn't pay tax, the maximum that can be paid into a pension for him will be £2880 per annum, to which tax relief will be added.
Have you checked if he is receiving the full state pension? If not, then you can check if it is possible to top-up his NI contributions.
'Anyone can pay into a pension for someone else and receive tax relief for doing so. For example, you could pay a contribution for your spouse or unmarried partner or your company could do the same' very top Google result.
I'd try penfold if you really want to do it. you can change payment amounts and top up additional when you want.
It does say anyone can pay into anyone I think they just use that as an example. And it does say children can pay into parents so one of you is actually related (your other half).
It wouldn't make sense to do so. It would seem foolish for your father-in-law to be earning cash in hand and not declaring it because it's probably below the personal allowance if he's struggling - or he'd be eligible for top-ups from universal credit. But he has a reckoning coming at some point - he either has to declare it now or potentially face questions when he has to stop working and claim the state pension or pension credits. If you're planning to give him money then you don't want him to have assets when he reenters the tax system - you've given him £10,000 into some pension and the tax man says "thank you very much, we'll take that". You can just save in your own name and give your father-in-law money as and when you deem it appropriate. If you want to save £xxx into a "pension" for him then save it into your own S&S ISA and give him the money later.
undoubtedly the most helpful answer to my question, thank you. he has no assets apart from his 20 year old ford transit connect so that’s not a massive concern, thank you mate👍
If you save in your own name, I suggest updating your will to ensure he receives his share of the money in the event your demise.
Googling "Can you contribute to someone else's pension" and clicking on the first link explains it pretty well. Alternatively, he could stop evading tax and pay his fair share to society....
he doesn’t earn enough to pay tax lol that’s why i asked the question about setting up a pension for him????
Generally speaking, "cash in hand" is taken here to mean that someone doesn't declare their earnings. If you earn £8000 or £10,000 a year then that's less than the personal allowance (meaning you don't earn enough to pay income tax) but you still have to declare it. If he's self-employed then he should probably be paying national insurance, which is like [£3.50 a week](https://www.gov.uk/self-employed-national-insurance-rates). If he's declaring his income then he'll probably be eligible for universal credit.
If he is, as you say, an incredibly hard worker, it seems odd that he earns so little that he doesn’t owe any tax. If he earns the minimum hourly wage (£11.44 per hour), works 40 hours per week, and has 6 weeks off during a year, he would earn £21k per year, whereas the personal allowance is only £12,750.
Are you sure? Anything over around £6,300 and he owes tax.
Hi /u/Real_Cranberry_4462, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/pensions/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.) If someone has provided you with helpful advice, you (as the person who made the post) can award them a point by including `!thanks` in a reply to them. Points are shown as the user flair by their username.
You can pay into someone else's pension - I am doing that at the moment but they had to create the pension account; I found the Penfold pension appropriate in this case. Edit: as he doesn't pay tax, the maximum that can be paid into a pension for him will be £2880 per annum, to which tax relief will be added. Have you checked if he is receiving the full state pension? If not, then you can check if it is possible to top-up his NI contributions.
'Anyone can pay into a pension for someone else and receive tax relief for doing so. For example, you could pay a contribution for your spouse or unmarried partner or your company could do the same' very top Google result. I'd try penfold if you really want to do it. you can change payment amounts and top up additional when you want.
i know what ‘the very top google result’ is but there was absolutely nothing covering parents in law or how to do it so that’s why i asked on here?
It does say anyone can pay into anyone I think they just use that as an example. And it does say children can pay into parents so one of you is actually related (your other half).