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Seasonal work and qualifying years

I'm looking for confirmation of something my colleague explained to me.

I was under the impression that if you earned over the lower earnings limit (£5668 per year) it was a qualifying year for National Insurance contributions.

I earn over this amount, however I only get paid 10 times a year.

My colleague told me that it's the distribution of pay that counts - that one earns qualifying weeks (earnings of £109 or more per week), rather than qualifying years. And that I would still need to pay NI contributions to cover those months that I don't work.

He also said that if you earn over the primary threshold of £7755 per year that you earn a qualifying year regardless of the distribution of pay.

I'm looking for confirmation of this and also any further advice about things that are unique to my working situation.

The guidance doesn't seem to cater very well for seasonal workers and I hope others might find this useful (if its correct!).

Thanks in advance

Comments

  • BBen wrote: »
    My colleague told me that it's the distribution of pay that counts - that one earns qualifying weeks (earnings of £109 or more per week), rather than qualifying years. And that I would still need to pay NI contributions to cover those months that I don't work.

    This sounds correct, in principle (I can't confirm your precise figures). National Insurance is a periodic insurance scheme, operating on regular wage periods of a week or a month. It's always been like that, and it's quite an old system.

    Of course, income tax is also periodic, in that it relates to a tax year (a much longer period than National Insurance). It's better to earn £20,000 for each of two tax years than £40,000 in one tax year and £0 in the next, because personal tax allowances are applied periodically, and can't be carried over.

    Well done for spotting this. There are usually time limits for making good holes in one's record (six years? I dunno, it's a decade since I last paid voluntary NI).

    Warmest regards,
    FA
    Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
    THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
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