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  • FIRST POST
    • Kesi
    • By Kesi 11th Oct 17, 9:09 PM
    • 22Posts
    • 4Thanks
    Kesi
    NI question.
    • #1
    • 11th Oct 17, 9:09 PM
    NI question. 11th Oct 17 at 9:09 PM
    Hello. I reach state pension age in 3 years aged 66. I have just left my employed work with approximately £9k of earnings for this tax year. I will be going self employed from November and expect to only earn approx £2k before April 2018. I need 3 full years to qualify for the new full SP. Have I paid enough NI this year for this to qualify or will I need to pay Class 2 re s/employment as well?.
Page 1
    • xylophone
    • By xylophone 11th Oct 17, 9:49 PM
    • 23,634 Posts
    • 13,767 Thanks
    xylophone
    • #2
    • 11th Oct 17, 9:49 PM
    • #2
    • 11th Oct 17, 9:49 PM
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/607128/your-state-pension-explained-apr-2017.pdf

    Page 4
    • Kernel Sanders
    • By Kernel Sanders 11th Oct 17, 10:48 PM
    • 3,193 Posts
    • 1,317 Thanks
    Kernel Sanders
    • #3
    • 11th Oct 17, 10:48 PM
    • #3
    • 11th Oct 17, 10:48 PM
    Good luck with understanding the Govt.pdf to which Xylo links. In 3b, it states:

    We will use the qualifying years on your National Insurance record as at 5 April 2016
    to work out your ‘starting amount’.


    They then contradict this by stating that years after that date are also used to work out this starting rate!:

    Each ‘qualifying year’ you add to your National Insurance record after 5 April 2016 will add a certain amount (about £4.55 a week, this is £159.55 divided by 35**) to your ‘starting amount’,
    Last edited by Kernel Sanders; 11-10-2017 at 10:52 PM.
    • p00hsticks
    • By p00hsticks 11th Oct 17, 11:20 PM
    • 5,778 Posts
    • 5,554 Thanks
    p00hsticks
    • #4
    • 11th Oct 17, 11:20 PM
    • #4
    • 11th Oct 17, 11:20 PM
    They then contradict this by stating that years after that date are also used to work out this starting rate!:
    Originally posted by Kernel Sanders
    I don't see a contradiction. Years before April 2016 are used to calculate the starting amount as at that date, years after then add to that amount.
    • marlot
    • By marlot 12th Oct 17, 6:15 AM
    • 3,133 Posts
    • 2,274 Thanks
    marlot
    • #5
    • 12th Oct 17, 6:15 AM
    • #5
    • 12th Oct 17, 6:15 AM
    Hello. I reach state pension age in 3 years aged 66. I have just left my employed work with approximately £9k of earnings for this tax year. I will be going self employed from November and expect to only earn approx £2k before April 2018. I need 3 full years to qualify for the new full SP. Have I paid enough NI this year for this to qualify or will I need to pay Class 2 re s/employment as well?.
    Originally posted by Kesi
    When I log in and view my pension entitlement, it shows this year as already completed. If you log in, you'll probably find you are fine too.
    • Kesi
    • By Kesi 12th Oct 17, 6:21 AM
    • 22 Posts
    • 4 Thanks
    Kesi
    • #6
    • 12th Oct 17, 6:21 AM
    • #6
    • 12th Oct 17, 6:21 AM
    Yes Thank you. The part that confuses me is for the 17-18 tax year. Will I have paid enough NI on my employed earnings this year to qualify for a full year (which I need as I was contacted out) or will I need to pay class 2 on my self employment income as it will be only about £2k this tax year....
    .Edit. Oh now I realise that I will have to pay class 2 to go towards a contributing year from Xylophone's link. And hopefully it will tell me how much I will need to top this year up on my tax account when it's updated in the future.
    So best to register as self employed now and start paying class 2 even though I won't be paid anything until November (contractor)?.
    Last edited by Kesi; 12-10-2017 at 6:38 AM.
    • xylophone
    • By xylophone 12th Oct 17, 10:59 AM
    • 23,634 Posts
    • 13,767 Thanks
    xylophone
    • #7
    • 12th Oct 17, 10:59 AM
    • #7
    • 12th Oct 17, 10:59 AM
    Link in post 2

    What is a ‘qualifying year’?
    You can build a qualifying year for State Pension purposes if your earnings in a
    single job are at or above 52 times the Lower Earnings Limit (£5,876 in 2017/18).


    See also

    http://forums.moneysavingexpert.com/showthread.php?t=5433291&highlight=qualifying+year +national+insurance

    Have you checked your situation? See post 5 above.


    https://www.gov.uk/personal-tax-account

    https://www.litrg.org.uk/tax-guides/tax-basics/what-national-insurance#toc-how-do-i-check-my-national-insurance-contributions-record-
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