What are NI contributions ?

Darlyd

Sorry for dim question BUT I really am not at all bright

I started work last year, And I pay no tax am in the K tax bracket, (average PA 4-5k) I also notice I do not pay NI ? Why is this? And what does it mean for my future?

tanith

I don't think you pay under a certain amount .. I found this but its a bit complicated it shows the rates and thresholds but to be honest I didn't understand it... you might be cleverer than me..lol..

McKneff

I think that if you earn under £105 per week then you dont pay NI. Earn over this and you pay 12% on the whole lot, not just the difference

NI counts towards any benefits you need to apply for in the future, also to claim a full state pension when you retire you need 30 years worth of contributions. I presume from your post you have plenty of time to make that up for your state pension.

zagfles

You don't pay any NI if you earn under £139 pw, but you do get your NI stamp if you earn over £102pw. So in that range you get your stamp free. If you earn under £102 you don't get your stamp, which might get you less state pension and no contributory benefits eg contribution based JSA etc.

But you only need 30 years stamp for a full state pension, and if youcan't get contributory benefits you'll still be eligible for income based benefits, unless you have savings etc.