National Insurance question

nick74

Deleted_User said:

p00hsticks said:

Deleted_User said:

I thought that to be creditted with a full years NI credits for State Pension purposes - you had to contribute 52 weeks / 12 months worth ?

On looking at my HMRC record - I see that (for some reason 1997/8 - I only paid 43 weeks worth - but am still credited with a full years NI

Does this mean that my missing 8 years can be built up at less cost than 8 full years ?

As I understand it you have to have earnings in the year of 52 x the weekly lower earnings limit (LEL), which is currently £120. So if you are a relatively high earner you can get a full years credits in just a few months 

So - you are saying that someone earning more than £120 per week can get away with contributing less than 52 weeks NI  (albeit at a higher rate) and still get credited with 12 months ?

As an extreme example, if you can find a job that pays £6240 per day you could work one day per year, put you feet up for the remaining 364 days and be credited for a full 52 weeks contributions without ever actually paying a penny in National Insurance!

Ultimately all that matters is that you've been credited with a full years contributions, its not worth worrying how you got there, at least not after 23 years.

molerat

That won't work as earnings above the UEL don't count

nick74

molerat said:

That won't work as earnings above the UEL don't count

Yes for an employee you're correct. I was mistakenly thinking of a director where the NI is calculated on an annual basis.