Qualifying year NI?

Leigh-Anne_60

Good evening

Can anyone advise what level of earnings are needed to qualify for a full NI year?

I have a friend who has recently returned from living abroad.  On checking her pension forecast, she only needs 2 more qualifying years for FSP
 .
She is starting a job next week ( from what I gather not much more than NMW) & I’m trying to work out if she could earn enough in Jan/Feb/March to make it a qualifying year….. I’m doubting it due to low pay, but can’t find out actual figures required.

TIA

molerat

A qualifying year is achieved by earning 52 x the LEL of £123 per week, £6396, within a year.  But any pay packet that does not reach the LEL or any amount over the UEL does not count.  Any weeks where £123 is earned will gain a week's credit so would accrue a part year.

Were they working whilst abroad and working in the UK immediately before going abroad ?

Leigh-Anne_60

TY Molerat.  She will go over the LEL, so good to know she will get a partial year, she can then make a call on whether to top up ,,,,,, depending on how much she loves/hates returning to employment 😊 At 58, she still has a few years to play with.

She didn’t work whilst she was abroad, but she was working right up until she left the UK, about 14 years ago.

jamesd

I think molerat may be wondering whether she's entitled to make class 2 NI voluntary contributions for time abroad. Far cheaper than the usual.

eastcorkram

molerat said:

A qualifying year is achieved by earning 52 x the LEL of £123 per week, £6396, within a year.  But any pay packet that does not reach the LEL or any amount over the UEL does not count.  Any weeks where £123 is earned will gain a week's credit so would accrue a part year.

Were they working whilst abroad and working in the UK immediately before going abroad ?

If you earned say 10,000, between April and September, then nothing for the rest of the tax year, would that be a full year?

af1963

eastcorkram said:

molerat said:

A qualifying year is achieved by earning 52 x the LEL of £123 per week, £6396, within a year.  But any pay packet that does not reach the LEL or any amount over the UEL does not count.  Any weeks where £123 is earned will gain a week's credit so would accrue a part year.

Were they working whilst abroad and working in the UK immediately before going abroad ?

If you earned say 10,000, between April and September, then nothing for the rest of the tax year, would that be a full year?

Because of the way NI is charged separately for each pay period, it depends how the payments are spread.  One month of £9500 and 5 months of £100 would only count as £4189 for NI ( one month at upper earnings limit). Six months at £1500 would count as £9000.

Leigh-Anne_60

jamesd said:

I think molerat may be wondering whether she's entitled to make class 2 NI voluntary contributions for time abroad. Far cheaper than the usual.

Thanks, never heard of this.  Will have a Google  

molerat

Leigh-Anne_60 said:

jamesd said:

I think molerat may be wondering whether she's entitled to make class 2 NI voluntary contributions for time abroad. Far cheaper than the usual.

Thanks, never heard of this.  Will have a Google  

If not working overseas then the cheap class 2 will not be applicable.

Social Security abroad: NI38 - GOV.UK