National Insurance query

susanslr

I have 40 years National Insurance contributions. I plan to retire from my current job on 01/01/2016 at the age of 63. I shall then take my occupational pension. I am male - despite my username. My state pension age is 65.
I plan to take alternative part-time work between the age of 63 and 65.
Do I pay National Insurance contributions during this period? And, if so, at what rate and at what threshold?

thank you

Torry_Quine

You will be liable for NI contributions at exactly the same rate until you reach your state pension age.

tocsin

Just to add to TQ's reply - you will only pay NI contributions on your part time earnings, there will be no NI contributions payable from your occupational pension, just income tax.

(And congratulations on de-lurking after over 9 years!)

Savvy_Sue

tocsin wrote: »

Just to add to TQ's reply - you will only pay NI contributions on your part time earnings,

But only if your p/t earnings are over the threshhold, which is currently roughly (very roughly) £100 per week.

You probably realise that both your occupational pension and your part-time work will be taxable. It will probably make sense to have your tax code applied to your pension because that's a stable income, and then pay tax at BR on your p/t work. If your pension is lower than whatever the personal allowance is by then, you'd get some tax-free pay, but it's a little more complicated.

Gers

Torry_Quine wrote: »

You will be liable for NI contributions at exactly the same rate until you reach your state pension age.

I asked almost the same question of the Jobcentre Plus people the other day and was told that as I have a full contribution record since 1972 I don't need to pay NI anymore when I finish work on 31 March.

I draw a private pension which is taxed and am not eligible for state pension for another four years. I don't intend to do any full time work and may/may not do part time work. I am not claiming any form of benefit.

Your response sounds as if I should continue to pay NI even though I was told the opposite.

I may have misread the situation...as the OP is intending to work until state pension age and I am not!

zygurat789

Gers wrote: »

I asked almost the same question of the Jobcentre Plus people the other day and was told that as I have a full contribution record since 1972 I don't need to pay NI anymore when I finish work on 31 March.

I draw a private pension which is taxed and am not eligible for state pension for another four years. I don't intend to do any full time work and may/may not do part time work. I am not claiming any form of benefit.

Your response sounds as if I should continue to pay NI even though I was told the opposite.

I may have misread the situation...as the OP is intending to work until state pension age and I am not!

It is a statutory requirement to pay NI on your wages if they exceed the minimum level.
You were told that you had sufficient contributions to qualify for a full pension and, therefore, did not need any more to qualify for the full SP.
It is not a question of whether you should or should not pay NI, to cover your doctors hospital etc, it will be deducted if you qualify.

Gers

Thanks for the reassurance - I thought there was a category of NI 'stamp' which could/should be paid when not earning and not claiming unemployment benefit. However, I am now OK with not paying and have my printout of contributions showing full payments and nothing outstanding or missing.

Off to sit by the sea (well, at least in the morning when the sun rises!).

zygurat789

Gers wrote: »

Thanks for the reassurance - I thought there was a category of NI 'stamp' which could/should be paid when not earning and not claiming unemployment benefit. However, I am now OK with not paying and have my printout of contributions showing full payments and nothing outstanding or missing.

Off to sit by the sea (well, at least in the morning when the sun rises!).

There is a voluntary rate if you need contribution years, currently £13.90 pw but many become self employed, in a very small way, and pay £2.75 pw.