NI Threshold changes

SouthCoastBoy

Does the change in NI threshold have implications to the state pension qualification year. My understanding is you needed to contribute 52*lel? If that is the case is the qualification threshold at the new ni threshold?

molerat

If you are relying on the 52 x LEL to qualify, which is not the usual way for the majority, then each year is a different amount according to the LEL for that year. The LEL is the point at which you are credited with NI without paying. The new threshold announced today is the PT, the point at which you start paying NI.

Nebulous2

molerat said:

If you are relying on the 52 x LEL to qualify, which is not the usual way for the majority, then each year is a different amount according to the LEL for that year. The LEL is the point at which you are credited with NI without paying. The new threshold announced today is the PT, the point at which you start paying NI.

When will we know the new LEL?  If it goes up by £3k as well it could have implications for me. I'm going down to one day a week from April and still need two years NI, although the second one adds very little. 

zagfles

Nebulous2 said:

molerat said:

If you are relying on the 52 x LEL to qualify, which is not the usual way for the majority, then each year is a different amount according to the LEL for that year. The LEL is the point at which you are credited with NI without paying. The new threshold announced today is the PT, the point at which you start paying NI.

When will we know the new LEL?  If it goes up by £3k as well it could have implications for me. I'm going down to one day a week from April and still need two years NI, although the second one adds very little. 

Rates are here https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023

Doesn't include the PT change, that's in July. No mention of any change in the LEL in the budget, there's no way that'll be increasing £3k. Just the usual inflation increase in April.

Nebulous2

zagfles said:

Nebulous2 said:

molerat said:

If you are relying on the 52 x LEL to qualify, which is not the usual way for the majority, then each year is a different amount according to the LEL for that year. The LEL is the point at which you are credited with NI without paying. The new threshold announced today is the PT, the point at which you start paying NI.

When will we know the new LEL?  If it goes up by £3k as well it could have implications for me. I'm going down to one day a week from April and still need two years NI, although the second one adds very little. 

Rates are here https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023

Doesn't include the PT change, that's in July. No mention of any change in the LEL in the budget, there's no way that'll be increasing £3k. Just the usual inflation increase in April.

Thanks - I hadn't picked up that the new PT doesn't apply in the first quarter. 

The LEL is showing as £123 a week there, up £3. 

Jonty6262

https://www.gov.uk/government/publications/national-insurance-primary-threshold-and-the-lower-profits-limit-increase-and-associated-class-2-changes-in-2022-to-2023-tax-year/national-insurance-increase-to-primary-threshold-and-the-lower-profits-limit-and-reduction-in-class-2-liability-of-those-earning-between-the-small-pr

Nebulous2

Jonty6262 said:

https://www.gov.uk/government/publications/national-insurance-primary-threshold-and-the-lower-profits-limit-increase-and-associated-class-2-changes-in-2022-to-2023-tax-year/national-insurance-increase-to-primary-threshold-and-the-lower-profits-limit-and-reduction-in-class-2-liability-of-those-earning-between-the-small-pr

That gives some detail, as did the statement, about the LPL, but I still haven't seen anything about any impact on the LEL. 

zagfles

Nebulous2 said:

Jonty6262 said:

https://www.gov.uk/government/publications/national-insurance-primary-threshold-and-the-lower-profits-limit-increase-and-associated-class-2-changes-in-2022-to-2023-tax-year/national-insurance-increase-to-primary-threshold-and-the-lower-profits-limit-and-reduction-in-class-2-liability-of-those-earning-between-the-small-pr

That gives some detail, as did the statement, about the LPL, but I still haven't seen anything about any impact on the LEL. 

Because it's not changing from the previously announced rates. If it was they'd have said.

molerat

Nebulous2 said:

Jonty6262 said:

https://www.gov.uk/government/publications/national-insurance-primary-threshold-and-the-lower-profits-limit-increase-and-associated-class-2-changes-in-2022-to-2023-tax-year/national-insurance-increase-to-primary-threshold-and-the-lower-profits-limit-and-reduction-in-class-2-liability-of-those-earning-between-the-small-pr

That gives some detail, as did the statement, about the LPL, but I still haven't seen anything about any impact on the LEL. 

The draft legislation around changes to NI is here

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062566/Draft_legislation_National_Insurance_Contributions__Increase_of_Thresholds__Bill.pdf

That is all that is changing, literally replace £a with £b of the listed items.