NI LEL rates as of July 2022

Baldyslapper

Hi, 
Could anyone please clarify what the current LEL fo NI contributions is for a Part-Time employee is please?
Many thanks.

NedS

The Lower Earnings Limit (LEL) has not changed. See here:

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023#class-1-national-insurance-thresholds

It is only the Primary Threshold that has changed in July 2022.

zagfles

Indeed as above it's just the PT that is changing (that is the point when you start to pay NI), not the LEL (which is the point at which you start earning credits).

Ignore all the ridiculous conspiracy theories doing the rounds, that the change in thresholds is a sneaky way to reduce NI credits. It isn't. The PT change only changes how much NI you pay, it doesn't change anything to do with credits eg towards the state pension.

Baldyslapper

Many thanks Guys, Much appreciated.

Can you fill any gaps in Qualifying weeks with a Voluntary Payment?  ( I'm anticipating a couple of months shortfall in earnings until my hours are increased)

molerat

Baldyslapper said:

Many thanks Guys, Much appreciated.

Can you fill any gaps in Qualifying weeks with a Voluntary Payment?  ( I'm anticipating a couple of months shortfall in earnings until my hours are increased)

Yes ............

zagfles

Yes but you might not need to. The way it works is quite complicated - to count as a qualifying year you need to have earned at least 52x the weekly LEL, with a few foibles, such as any week you earn below the LEL doesn't count at all, and if you ever earn over the UEL you should ignore any income above the UEL. If you get paid monthly, replace "week" with "month", it works on a pay period basis.

After the end of the tax year you can check your NI record on your HMRC personal tax account, this will show if you're short and how much you need to pay to make it a qualifying year. You might have to wait a few months after the end of the tax year for them to update it. You have 6 years to pay, but after 2 years the cost could go up.

Baldyslapper

Thanks Zagfles, that's very helpful