Complete qualifying national insurance years

where_are_we

My daughter took 10 weeks unpaid leave to go backpacking in Australia in January to March of this year. Her employer did not pay any national insurance contributions during this period. How are qualifying national insurance years for her state pension calculated? Does this mean that for the tax year 2015 - 2016 she will be granted a 42 /52 annual contribution? Do you need a full years contribution to qualify and would she benefit from paying 10 weeks NI contributions to gain one qualifying year?
Advice would be very welcome.

xylophone

A qualifying year is a tax year in which
you have received (or are treated as having received) qualifying
earnings of at least 52 times the Lower Earnings Limit for that year.

Old version P15 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/520713/withdrawn-dwp026-state-pension.pdf


http://taxaid.org.uk/guides/information/an-introduction-to-income-tax-national-insurance-and-tax-credits/national-insurance/national-insurance-for-employees-and-employers/national-insurance-thresholds

New version P4
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/514293/your-state-pension-explained-apr-2016.pdf

where_are_we

Thank you - I did not realise that a qualifying year means one of two things - (1) you have paid 52 weeks of class 2 contributions or (2) you have earned more than the LEL (lower earnings limit) for that tax year, which for 2015 - 2016 was £5824. So , as my daughter earned more than £5824 in 2015 - 2016, this will mean that 2015 - 2016 will count as a qualifying year towards her entitlement to a state pension. Have I got this correct?

greenglide

This is correct providing that the earnings are above the limit in a single employment. They don't add two or more employments together.

xylophone

This is correct providing that the earnings are above the limit in a single employment. They don't add two or more employments together.

See https://pensionslatest.blog.gov.uk/2015/10/13/how-national-insurance-builds-up-state-pension/

Northamptonblue

I wonder if anybody could clarify this for me?

In this tax year I worked until August 31st before retiring early. I earned a little over £17K in those five months. Does this count as a full year towards SP as I have earned more than the threshold or not because I didn’t work the full twelve months?

p00hsticks

Northamptonblue wrote: »

I wonder if anybody could clarify this for me?

In this tax year I worked until August 31st before retiring early. I earned a little over £17K in those five months. Does this count as a full year towards SP as I have earned more than the threshold or not because I didn’t work the full twelve months?

Yes it should count as a full year.

greenglide

..... providing that you don't reach State Pension Age before 6th April 2018.

The year in which you reach SPa doesnt count.

bhjm

Hello,

so just for my understanding, i read https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/684188/your-state-pension-explained.pdf

but it does not explain to me. or I don`t understand.

to get a full qualifying year i have to earn more than 52 the Lower earnings Limit ? What does it mean exactly?

i have to pay 52x the LEL via NI and as soon this number is reached - i have a full qualifying year? So theoretically, even 1 week / month could be sufficient?

xylophone

See post 4

https://forums.moneysavingexpert.com/discussion/comment/71234294#Comment_71234294

https://uk.practicallaw.thomsonreuters.com/2-205-6579?transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1

https://www.litrg.org.uk/tax-guides/employed/what-national-insurance-do-i-pay-employee

bhjm

xylophone wrote: »

See post 4

https://forums.moneysavingexpert.com/discussion/comment/71234294#Comment_71234294

https://uk.practicallaw.thomsonreuters.com/2-205-6579?transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1

https://www.litrg.org.uk/tax-guides/employed/what-national-insurance-do-i-pay-employee

Thanks...
52x the LEL contributions for the NI or just 52 times the LEL ?

all links did not explain it to me