National Insurance Contributions

I am 64 years old so not quite reached pension age but I took early retirement and now live off my private pension. I pay income tax on my pension but I do not pay National Insurance on it.
I have been asked to work part time on two afternoons per week by a friend and will earn no more than £100 per week. I understand that I will be required to pay Income Tax at 20% because my tax allowance is taken up by my pension but my question is will i be required to pay National Insurance.
Thanks in advance. 

Comments

  • chrisbur
    chrisbur Posts: 4,014
    Name Dropper First Anniversary First Post
    Forumite
    You can earn up to £242 a week before any NI is due.
  • banjobob59
    banjobob59 Posts: 27
    First Post First Anniversary Combo Breaker
    Forumite
    edited 20 December 2023 at 12:05PM
    I know this may sound obvious to most people but will my private pension be taken into consideration in the calculations?
  • Brie
    Brie Posts: 9,345
    Photogenic First Post Name Dropper First Anniversary
    Forumite
    edited 20 December 2023 at 12:06PM
    isn't it a question of your friend paying NI contributions for you if you are working for them?  

    that said it appears that there should be 0% deducted for NI but I may not be reading the table correctly.  

    National Insurance rates and categories: Contribution rates - GOV.UK (www.gov.uk)

    Category letter£123 to £242 (£533 to £1,048 a month)£242.01 to £967 (£1,048.01 to £4,189 a month)Over £967 a week (£4,189 a month)
    A0%12%2%

    Next question will be do you need to make more contributions to get your full state pension?
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • I have made full contributions to my National Insurance so i will get a full state pension when I reach pension age. With regards to being paid. I will be paying tax as self employed.
  • molerat
    molerat Posts: 31,571
    Name Dropper Photogenic First Post First Anniversary
    Forumite
    edited 20 December 2023 at 12:16PM
    Will you really be self employed ?
    I have made full contributions to my National Insurance so i will get a full state pension when I reach pension age

    A bit of a meaningless statement, have you actually checked ?


  • I know this may sound obvious to most people but will my private pension be taken into consideration in the calculations?
    No - only employment income is included for national insurance
  • eskbanker
    eskbanker Posts: 29,940
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    I know this may sound obvious to most people but will my private pension be taken into consideration in the calculations?
    Just the income tax calculations, not the NI ones, which only apply to employment income....
  • xylophone
    xylophone Posts: 43,887
    Name Dropper First Anniversary First Post
    Forumite
    A bit of a meaningless statement, have you actually checked ?
    State Pension Forecast here

    https://www.gov.uk/check-state-pension
  • I paid National Insurance in a part time job which i have now finished, I only earned £8400 for the year so will i get my NI contributions returned and how do i go about it ??
  • I paid National Insurance in a part time job which i have now finished, I only earned £8400 for the year so will i get my NI contributions returned and how do i go about it ??
    National Insurance is only ever refunded where you paid more than the maximum at 12% rate. You are not entitled to a refund.
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 234K Work, Benefits & Business
  • 606.2K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards