National Insurance Contributions

s-rly

Hello, looking for some advice/ help
If you work as an employee for a company, no matter how much you earn or how many hours you work will national insurance contributions be automatically be taken from your wages? Is that right?
I have been offered a job of 8hrs a week (at the moment) and it is not worth me claiming jobseekers allowance anymore as i will be earning more than i get from claiming JSA, but what happens to my NI.
Thanks.

McKneff

No, cant remember the amount you can earn before NI is paid, but its round about £96 a week. So you wont pay NI on 8 hours, well
not unless youre earning over about £12 an hour lol.

I think also that you can claim JSA and work a certain amount of hours.
You need to ask at the job centre really.

s-rly

McKneff wrote: »

No, cant remember the amount you can earn before NI is paid, but its round about £96 a week. So you wont pay NI on 8 hours, well
not unless youre earning over about £12 an hour lol.

Thanks for your reply. No not quite £12 an hour
So i can simply come off JSA and work p/t at 8hrs whilst i look for another job.
What is this about the job centre paying your 'stamp' or is this national insurance credits whilst out of work?
Sorry im not really clued up on this
Thanks.

anmarj

s-rly wrote: »

What is this about the job centre paying your 'stamp' or is this national insurance credits whilst out of work?.

yes that is correct

McKneff

Please dont forget to check with the job centre about working some hours and still being able to claim JSA, i have read it on these forums that you can do this if you fit the criteria.

s-rly

McKneff wrote: »

Please dont forget to check with the job centre about working some hours and still being able to claim JSA, i have read it on these forums that you can do this if you fit the criteria.

Yes i believe you can but i would be earning more than i get from JSA anyway, you still have to show proof your looking for work etc and you still have to attend the various courses they put you on which obviously isnt ideal if your working part time a couple of hours everyday.

toonbaz

national insurance threshold is £95 p/w so no national insurance will be paid for you on income below that. you may be able to get the job centre to keep paying a stamp for you but that would probably mean you will need to continue to sign on and probably not receive any income from them due to you working.
in terms of future pension entitlement gaps in contributions arent normally much to worry about with the new pension rules but gaps in contributions could affect future claims for benefits.

s-rly

toonbaz wrote: »

in terms of future pension entitlement gaps in contributions arent normally much to worry about with the new pension rules but gaps in contributions could affect future claims for benefits.

Ive read into this and from what i can gather if you have gaps in NI payments (because earning less than £95 p/w), they will send you a letter to give you the choice if you want to pay that gap? And you have to have paid 30years of NI contributions in your working life to qualify for your pension?

CIS

If you earn between £97.00 and £110 then your NI credits are deemed to have been paid for state pension purposes.

In additon you may also have your NI record credited for pension purposes if,

Regulations 7B and 7C of the Social Security (Credits) Regulations 1975

An employed or self-employed person may be entitled to a "credit" for any tax week for which:

• they were paid

• Disabled Person’s Tax Credit, or
• Working Families' Tax Credit, or
• Working Tax Credit, and

• they had earnings below the LEL
• they are not a married woman with a valid married woman's reduced rate election.

If there is a disability element in the Tax Credit, the credited earnings can be taken into account for all benefits, including short term benefits, such as Job Seekers Allowance and Incapacity Benefit.

However, if there is no disability element within the Tax Credit, the credited earnings can only be taken into account for basic State Pension and bereavement benefits.

toonbaz

s-rly wrote: »

Ive read into this and from what i can gather if you have gaps in NI payments (because earning less than £95 p/w), they will send you a letter to give you the choice if you want to pay that gap? And you have to have paid 30years of NI contributions in your working life to qualify for your pension?

thats correct if you have a gap in contributions in any particular year they will send you a letter normally 18 months after the tax year ends giving you the option to make up the gap, the letter will also explain your current situation and how many years of contributions you have already.
most people find that now you only need 30 years of contributions for full state pension you could sustain many gaps in contributions throughout your working life without it affecting your pension in the future.

LittleVoice

If you work fewer than 16 hours a week you can continue to sign on at the Jobcentre and benefit in relation to credits towards your NI contributions.