NI contributions when stop working midyear.

pennywatch

Finishing work in January I will have 10 months NI contributions paid can you buy the extra two months to make up the full year or what ?

Thanks

p00hsticks

pennywatch wrote: »

Finishing work in January I will have 10 months NI contributions paid can you buy the extra two months to make up the full year or what ?

Thanks

I believe you can (presuming that you're not finishing because you've reached State Pension Age ... )

http://www.nidirect.gov.uk/do-you-need-to-top-up-your-national-insurance-contributions

SnowMan

pennywatch wrote: »

Finishing work in January I will have 10 months NI contributions paid can you buy the extra two months to make up the full year or what ?

Thanks

I'm assuming you mean January 2016. If you have been employed (as opposed to being self-employed) and have earned more than £5,824 up to January, then you probably already have a (full) Qualifying Year towards your state pension.

Essentially your excess earnings over the 10ish months are enough to cover for the missing 2 months.

(I'm assuming you reach State Pension Age after 5th April 2016)

pennywatch

Thanks

Yes, I finished at the end of January this year.

I have earned @15600.

I reach state pension age after April 2016

I thought I had to pay contributions EVERY month to have a years credit.

I was employed (not self employed)


Would my earnings for the last 10 months have covered me for the full year?

SnowMan

pennywatch wrote: »

Would my earnings for the last 10 months have covered me for the full year?

Yes your earnings for the 10 months will have comfortably covered you for the full year.

FatherAbraham

pennywatch wrote: »

I thought I had to pay contributions EVERY month to have a years credit.

The UK uses qualifying years, not months.

Austria uses months. Italy uses weeks.

Warmest regards,
FA

pennywatch

Exactly how much do you have to pay in NI contributions to have paid enough for a qualifying year?

Thanks

saver861

What actually happens in retirement year? I know it is whole years but for those that have not reached the NI quota, currently at just under £6000 can they do anything to have that year count or made up?

SnowMan

pennywatch wrote: »

Exactly how much do you have to pay in NI contributions to have paid enough for a qualifying year?

Thanks

You don't need to have paid any national insurance contributions to get a qualifying year, but you do need to have earned at least £5,824 for the year (2015/2016).

An employed person earning roughly between £5,824pa and £8,060pa evenly over the year would pay no national insurance but would have gained a qualifying year.

Where earnings fluctuate from week to week, or month to month then there may be pay periods (weeks or months) where earnings are for individual pay periods below £112 if paid weekly or £485 if paid monthly. Where that happens those weeks or months don't count as earnings towards the £5,824 required.

SnowMan

saver861 wrote: »

What actually happens in retirement year? I know it is whole years but for those that have not reached the NI quota, currently at just under £6000 can they do anything to have that year count or made up?

No, the last potential Qualifying Year is the one ending 5th April before State Pension Age.

greenglide

but you do need to have earned at least £5,824 for the year (2015/2016).

- in a single employment?