not paying NI anymore....

melg1973

Have put this on the pension thread but thought it might be better here...any thoughts most appreciated

I work job share 18.5 hours at the local council, its just dawned on me after getting this months payslip that I am no longer paying any tax or NI..at first that may seem a good thing but no NI doesn't seem good. My gross monthly pay is £613 which is over the NI threshold but because I've opted in to the council pension they take that off your pay before working out the tax and NI and after the £35 pension I don't pay either now. Obviously the tax doesn't matter but the NI does.

I phoned the NI helpline today and they said because I still earn over the 'lower earnings limit' I will still be credited with NI towards my state pension but nothing towards JSA contributions based (which was invaluable when I got made redundant a few years ago) or the new version of incapacity benefit, bereavements benefits etc.

I then phoned my payroll/pensions dept and asked them if I could pay my pension separately from my wages but they said no. The technical guy suggested I pay voluntary NI but that doesn't make any difference as the voluntary contributions are only towards the state pension (not the other state benefits) which i don't need if I am over the lower earnings limit anyway.

If we had had a pay rise over the last 2 years this probably wouldn't have even been an issue as I would have probably still been just over the threshold, even after the pension payment.

Basically what both departments said was that my choice at the moment is either paying NI OR paying into the council pension!!! I cannot believe it has come to that to be honest. I think at our council the majority of part timers are on my scale (admin type jobs) so it may have a big impact.

Any ideas peeps???

chrisbur

I believe that you have either been given incorrect advice on the NI helpline or have mis-understood what was said.

The folowing is from the

Employer Helpbook E12(2011)

PAYE and NICs rates and limits for 2011–12
"Lower Earnings Limit (LEL)
This is the minimum level of earnings that an employee needs to qualify for benefits, such as State Pension and Jobseeker’s Allowance. If an employee’s earnings reach or exceed this level, but don’t exceed the Primary Threshold, they won’t pay NICs but will be treated as having paid them when claiming benefit. "