NI contributions when stop working midyear.

SnowMan

greenglide wrote: »

- in a single employment?

Good point.

If you've earned say £60pw throughout the tax year in job 1 and concurrently £60pw throughout the tax year (for 52 weeks) in job 2 then although you have earned about £6,240 over the year from the two jobs (60 x 2 x 52) you won't have any qualifying weeks because each job is treated separately and you have been earning below £112pw in each job and so no earnings count.

If you've earned £120pw in job 1 for the first 26 weeks of the tax year and then changed jobs and earned £120pw in job 2 for 26 weeks you will have a qualifying year because each weekly earnings amount is above £112pw.

If you've earned £120pw in job 1 for the first 26 weeks of the tax year and concurrently earned £120pw in job 2 for 26 weeks, and then have not worked for the next 26 weeks, you will have a qualifying year because each weekly earnings amount is above £112pw and so all the earnings count. I think that's right.

(on a separate point if you earn above £815pw then all earnings don't count for that week)

xylophone

- in a single employment?

http://www.monetos.co.uk/pensions/state-pensions/basic/ni-contributions/

" If you earn more than the Lower Earnings Limit but less than the Primary Threshold you are credited as having paid N.I. contributions without having to actually pay them. If you have more than one job with a low salary you may not need to pay any N.I. contributions, since your separate salaries are seen individually and not collectively. If you earn less than the Lower Earnings Limit you are not required to pay N.I. contributions, but you must remember that you are thus not building up entitlement to state benefits or a State Pension."

neilvw

SnowMan wrote: »

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 £155 if paid weekly or £672 if paid monthly. Where that happens those weeks or months don't count as earnings towards the £5,824 required.

Shouldn't those be £112 weekly and £485 monthly, i.e. the Lower Earnings Limit?

SnowMan

neilvw wrote: »

Shouldn't those be £112 weekly and £485 monthly, i.e. the Lower Earnings Limit?

Thanks. I've edited my post.