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Class 1 NI Contributions - Qualifying year amount?
sairy.gamp
Posts: 71 Forumite
in Cutting tax
Hello, Iwonder if someone might help me with a query about how much Class 1 NI contributions are required to gain a 'qualifying year' on my NI record/State Pension forecast?
In addition to being a partner in a small business partnership (all profits attributed to the other partner for personal allowance reasons) I was employed in a part-time job for the first 3-4 months of the 2019/20 tax year. During this employment i paid about £350 in Class 1 contributions.
When i requested a State Pension forecast later in the year I noticed that the 'further contributory years remaining' to get the full State Pension amount was the same as the previous years (2018/19) forecast, i.e. it had not reduced by a year as it usually does. From this I assumed i had not paid enough Class 1s due to leaving my employment after only 3-4 months of the 2019/20 tax year. Based on this assumption, so as not to 'drop a year' on my NI record I opted via my Self Assessment Return to voluntarily pay Class 2 contributions. I am now wondering if this was necessary and whether my Class 1s paid would have been enough to get me my qualifying year? A subsequent forecast to this Class 2 payment does indeed give me my expected qualifying year but i dont know whether this was due to my perhaps un-necessarily paid Class 2s or the £350 worth of Class 1s.
Confused? I am!
Thanks in advance for any help.
In addition to being a partner in a small business partnership (all profits attributed to the other partner for personal allowance reasons) I was employed in a part-time job for the first 3-4 months of the 2019/20 tax year. During this employment i paid about £350 in Class 1 contributions.
When i requested a State Pension forecast later in the year I noticed that the 'further contributory years remaining' to get the full State Pension amount was the same as the previous years (2018/19) forecast, i.e. it had not reduced by a year as it usually does. From this I assumed i had not paid enough Class 1s due to leaving my employment after only 3-4 months of the 2019/20 tax year. Based on this assumption, so as not to 'drop a year' on my NI record I opted via my Self Assessment Return to voluntarily pay Class 2 contributions. I am now wondering if this was necessary and whether my Class 1s paid would have been enough to get me my qualifying year? A subsequent forecast to this Class 2 payment does indeed give me my expected qualifying year but i dont know whether this was due to my perhaps un-necessarily paid Class 2s or the £350 worth of Class 1s.
Confused? I am!
Thanks in advance for any help.
0
Comments
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For it to count as a full year you need to have paid (or been creditted with) NI on earnings up to the lower earnings limit for the year - so on earnings of at least £120 x 52.
0 -
It's possible that when you checked your pension forecast later in 2020 the 2019/20 year of contributions had not been added yet. Rather than looking at the years remaining did you check what was actual shown as credited for the 2019/20 year.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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