paying N.I.

coulter22

Hi
I have an occupational pension, I was part medically retired 2years ago, I have been on incapacity during that time, I am lead to believe my N.I. for state pension is paid when on incapacity.
I have recently started a job part time 16hrs a week and earning approx £620 per month, my question is how much national Insurance should I be paying, I am currently not paying any N.I. on my occ pension, but I am paying £22 per month from my 2nd income (part time job) is this correct ?? I thought it might have been much more required for my state pension I am 50yrs old, thanks for any replies,

coul

Savvy_Sue

NI is calculated on roughly a percentage basis, so if you don't earn much you don't have to pay much. But I believe paying ANY is enough for it to count towards your pension.

seven-day-weekend

I believe NI is income related, so that the more you earn the more you pay, but it still counts towards your State Pension.

If you are in receipt of IB you will be credited with NI contibutions.

You will not pay any on your Occupational Pension.

I'm pretty sure I'm right, but if not I'm sure others will correct me!

In the meantime, ask for a State Pension Forecast (you can do it online - google 'State Pension Forecast Online') to see if you have any shortfall while you've still got time to rectify it if necessary.

philip

1 You do not pay NI on a job that earns you less than approx £98 per week .In other words if you have 3 jobs, two where you earn less than this you will not pay NI. If the 3rd job is over £98 pw, then you will pay NI purely on that source of income.It is not like tax which is aggregated.Rules are a little, different if you are self employed.

2 Only source that falls into this category is part time job. On £620 per month £22 is right. This is class 1 (employed) contribution and will count towards pension, sick, job seekers.The amount of NI you pay is not important, as long as as Ni is paid at the correct rates according to your income.
3 When in receipt of benefit you get credited with NI conts towards pension. As a previous poster said, get a pension forecast from HMRC contributions section.

coulter22

Many thanks all, you have put my mind at rest
coul