National Insurance / Do I need to pay it again?

irri_tant

I'm taking VR in July next year and may end up working again either in a company or self employed.

I've paid in since I was 16 & I'll be 55 when I take VR

So if I take up a job offer or go self employed do I need to pay NI again?

molerat

NI remains payable, subject to the normal rules & limits, on employment income until reaching state retirement age.

irri_tant

Thought there was a max number of years by which time you had paid enough in to cover your state pension.

CLAPTON

irri_tant wrote: »

Thought there was a max number of years by which time you had paid enough in to cover your state pension.

there is, (currently 30 years but will be 35 years 2016/7) but what had that got to do with paying NI if you have sufficient relevant earnings.

irri_tant

If I've paid enough in to qualify for a state pension why do I need to keep paying in?

(Works pension is a max of 40 years, after that no extra benefits other than death in service payout for widow)

HappyMJ

irri_tant wrote: »

Thought there was a max number of years by which time you had paid enough in to cover your state pension.

It's a minimum number of years. If you work and are under state pension age you pay NI. Think of it as tax. There are ways to minimize your NI by creating a limited company and then having the company pay yourself just enough (currently £148 per week) to be credited with contributions and then paying the remainder of the profit out to you as the shareholder as dividends. By being credited with NI contributions means you will be entitled to claim contibutions based job seekers allowance if you have to stop working due to a lack of work....or several other contribution based benefits.

HappyMJ

irri_tant wrote: »

If I've paid enough in to qualify for a state pension why do I need to keep paying in?

(Works pension is a max of 40 years, after that no extra benefits other than death in service payout for widow)

National Insurance is not a pension only tax. It covers anything else that the government wants to spend money on. All NI really does is pay the pensions of those who are currently claiming it. It's unfunded there is no pot to the value of billions of pounds. To continue paying out pensions the government requires new taxpayers to continue paying tax. Hopefully by introducing funded pensions it will reduce the pension bill way into the future.

irri_tant

HappyMJ wrote: »

NI. Think of it as tax.

I know that

zygurat789

irri_tant wrote: »

I know that

Rules is rules. You pay NI until you reach state retirement age.

You need 30 years etc.

What I can't see is why you are connecting the two together when there is no connection.