NI question.

Kesi

Hello. I reach state pension age in 3 years aged 66. I have just left my employed work with approximately £9k of earnings for this tax year. I will be going self employed from November and expect to only earn approx £2k before April 2018. I need 3 full years to qualify for the new full SP. Have I paid enough NI this year for this to qualify or will I need to pay Class 2 re s/employment as well?.

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/607128/your-state-pension-explained-apr-2017.pdf

Page 4

Kernel_Sanders

Good luck with understanding the Govt.pdf to which Xylo links. In 3b, it states:

We will use the qualifying years on your National Insurance record as at 5 April 2016
to work out your ‘starting amount’.

They then contradict this by stating that years after that date are also used to work out this starting rate!:

Each ‘qualifying year’ you add to your National Insurance record after 5 April 2016 will add a certain amount (about £4.55 a week, this is £159.55 divided by 35**) to your ‘starting amount’,

p00hsticks

Kernel_Sanders wrote: »

They then contradict this by stating that years after that date are also used to work out this starting rate!:

I don't see a contradiction. Years before April 2016 are used to calculate the starting amount as at that date, years after then add to that amount.

marlot

Kesi wrote: »

Hello. I reach state pension age in 3 years aged 66. I have just left my employed work with approximately £9k of earnings for this tax year. I will be going self employed from November and expect to only earn approx £2k before April 2018. I need 3 full years to qualify for the new full SP. Have I paid enough NI this year for this to qualify or will I need to pay Class 2 re s/employment as well?.

When I log in and view my pension entitlement, it shows this year as already completed. If you log in, you'll probably find you are fine too.

Kesi

Yes Thank you. The part that confuses me is for the 17-18 tax year. Will I have paid enough NI on my employed earnings this year to qualify for a full year (which I need as I was contacted out) or will I need to pay class 2 on my self employment income as it will be only about £2k this tax year....
.Edit. Oh now I realise that I will have to pay class 2 to go towards a contributing year from Xylophone's link. And hopefully it will tell me how much I will need to top this year up on my tax account when it's updated in the future.
So best to register as self employed now and start paying class 2 even though I won't be paid anything until November (contractor)?.

xylophone

Link in post 2

What is a ‘qualifying year’?
You can build a qualifying year for State Pension purposes if your earnings in a
single job are at or above 52 times the Lower Earnings Limit (£5,876 in 2017/18).

See also

https://forums.moneysavingexpert.com/discussion/5433291

Have you checked your situation? See post 5 above.


https://www.gov.uk/personal-tax-account

https://www.litrg.org.uk/tax-guides/tax-basics/what-national-insurance#toc-how-do-i-check-my-national-insurance-contributions-record-