Not Earning Enough To Pay N.i. Contributions

bazz

Hya. I work under 16 hrs a week(employed), and under the minimum earnings to pay tax and National insurance contributions. I have always paid a full stamp. Will I now fall behind with my contributions? Someone mentioned that I could sign on at the job centre to get my stamps credited.Can anyone help please?

shameless-about-money

You should be entitled to working tax credits for a start.

You can pay a voluntary stamp to keep your payments up to date.

Maybe you should visit your Job Centre and discuss it with them.

CIS

You may be covered by credits through WTC or at 16hrs at minimum wage = £85.60, you will get NI deemed at the lower earnings level anyway.

WTC route

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.

Deemed NI route
If you earnings are between £84 and £97 p/w , then for pension purposes you are deemed to have earned £97 and hence don't need to pay equivalent voluntary NI for that week.

bazz

Thanks x