Reclaiming tax - will it effect NI paid

Space_Orbit

I am finishing work at the end of June at age 56 and plan to live for the next few years on modest savings before accessing my works pension. I will have no further taxable income in tax year 2019/20.

In June I will have been paid 3 months salary in tax year 2019/20 - a total of just over £6250.

My intention is to reclaim my PAYE tax paid for these 3 months, however, I am wondering if it will impact on my National insurance records?

As I was contracted out my SP forecast shows I still need a couple of NI years (and intend to buy some in the future) to qualify for full state pension at 67. Working these 3 months will mean I have paid enough NI in 2019/20 to count as one year of NI contributions. As I believe I need to earn at least £6136.00 in 2019/20 to count.

If I claim back the tax paid in 2019/20 will it effect my NI records i.e will 2019/20 still count ?

Any advice would be appreciated. ( btw I have already checked my state pension forecast).

nick74

No, you are quite safe to claim an income tax refund. It will have no effect whatsoever on your National Insurance contributions.

00ec25

income tax and NI are separate taxes.

the circumstances under which you can claim a refund of NI are rare and can be ignored in your context.

You will get an income tax refund, you will not get an NI refund. Your qualifying year will therefore stand

Dazed_and_confused

As I was contracted out my SP forecast shows I still need a couple of NI years (and intend to buy some in the future) to qualify for full state pension at 67.

Presumably your current forecast includes contributions to 5 April 2018 so if you have been earning at a similar level (£24k+ annually) in 2018:19 to what you expect to earn in 2019:20 won't these two years be sufficient to get you to £164.35?