NI contributions/Pension

Kaceyj01

Hi does anyone know if your working part-time so your not earning enough to pay tax an ni contributions does this effect your pension?I was told that it could effect your pension in a big way and now im worried as i have worked part=time for last 8 years.Someone said i should contact the tax office myself???

Darksparkle

If you don't earn enough to pay NI or receive NI credits then yes it would affect your state pension, this is one of the main purposes of paying NI.

How much do you earn each week/month?

Do you receive any benefits?

Dazed_and_confused

Register for your personal tax account on gov.uk and tonight you will be able to see your national insurance record and an estimate of how much state pension you are in line to get, no need to wait until tomorrow

nannytone_2

you need 35 years of NI contributions to qualify for a full state pension.
you can pay the years you have missed.
contact HMRC

TheGardener

It might be worth post this on the Pensions board ?

xylophone

Have a look at your new state pension statement.

https://www.gov.uk/check-state-pension

https://www.gov.uk/new-state-pension/eligibility

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

teddysmum

I worked part time for a while and didn't need to pay NI , but did have enough years of contributions for my basic State Pension. However, being ignorant, at the time, I didn't know that low earnings would affect my second State Pension, that depended on salary level.

My pension is with the old system, but believe that the second part is being phased out with the new, so my problem won't apply. (I'm correct ?)

antrobus

Kaceyj01 wrote: »

Hi does anyone know if your working part-time so your not earning enough to pay tax an ni contributions does this effect your pension?I was told that it could effect your pension in a big way and now im worried as i have worked part=time for last 8 years.Someone said i should contact the tax office myself???

Depends on your earnings. As far as NI is concerned, there is a primary threshold of £8,064 a year; any earnings over that, and you pay 12% NIC. But there is also a lower earnings threshold of £5,832. If your earnings are between £5,832 and £8,064, you pay 0% NI, but get a NI credit that counts for the state pension.

If you sign up for the Government Gateway, you can see your NI record online, and also get a forecast of your state pension.

https://www.gov.uk/check-national-insurance-record

p00hsticks

nannytone wrote: »

you need 35 years of NI contributions to qualify for a full state pension.
you can pay the years you have missed.
contact HMRC

It's not as simple as that for those who started their working lives under the 'old' State Pension rules as there is a transition to switch to the new State Pension rules.

You may get to the new maximum £155.65 with less than 35 years or it might take many more than 35 years (depending on whether you've previously been contracted in or out). Or you may even get more than £155.65

And buying missing pre-2016 years may or may not have any effect on your pension amount (depending on whether your April 2016 'starting amount' is from the old or the new rules).

You need to get an individual state pension forecast to find out how you stand, and then ask over on the pensions board if you're still unsure what to do.

https://www.gov.uk/check-state-pension

Ames

Was there a reason you were only working part time? If it was because you had children to look after then you'd have got NI credits through child benefit.

Kaceyj01

Yes i do have a child this is why i had to go parttime as im single mum aswell