LEL credit

remyroo

I increased my part time earnings in the 20/21 tax year to above the lower earnings limit but below the primary threshold for the last 4 months in said tax year which if I understand correctly means I qualify for NI credits. For this year to count towards the state pension will I now only have to pay 8 months of voluntary contributions. Is this how it works? Thanks

Dazed_and_C0nfused

Have you checked your State Pension forecast on your Personal Tax Account?

There is a separate section which details your NI position for each tax year and will usually include details to 5 April 2021 by now.

You can report back what it says if it is still unclear.

zagfles

Maybe a bit less, earnings above the LEL may get you more weeks. If you add all your earnings for the year not including any months where you earned under the LEL, and divide by the weekly LEL, that's the number of weeks credits you get from employment. Take that off 52 and that's the number of weeks you'll need to pay to get a qualifying year.

[It's more complicated if you ever go above the UEL but that probably doesn't apply to you]

As above check your tax account which should tell you how much you have to pay to make it a qualifying year. It may not have 20/21 details yet, but no rush, you have a few years to pay it (unless you're close to state pension age)

remyroo

I checked my state pension forecast and that tax year isn’t available yet. 

remyroo

Ok thanks. I’ll do a quick calculation and then wait for that tax year to update.