National insurance contributions Advice needed

paulalawson

Dazed_and_C0nfused said:

paulalawson said:

Hi everyone, I am 54 and am missing some years on my national insurance record, I need to make up 10 years, I can't afford to buy back any years but I was going to start paying class 3 contributions starting in April. I only work 8 hours a week but have heard if I work 12 hours which takes me over £123 a week but under the amount where I would pay national insurance that I can get ni credits ??? Is this correct and if so how long has this been the case?

My husband has an army pension and he insists I don't need to worry about topping up my pension as I will have enough to live on once retired.

Trying to work out what to do for the best, advice would be great

Many thanks

It is correct and has been the case for many years now.

Providing your employer files Real Time Information reports detailing your earnings you should automatically be credited with the appropriate week's NI (or a full year if you earn enough).

https://www.litrg.org.uk/tax-guides/employment/what-national-insurance-do-i-pay-employee#toc-what-happens-if-i-earn-less-than-the-weekly-monthly-threshold-

I worked over 12 hours a few years back for most of the year maybe not all, should I of recieved credits for those months I did, meaning would be a part year of credits? I have nothing of this on my ni forecast ???

Thanks

Bigwheels1111

Declaring as self employed could work, £180 for Ni. Start an eBay business cough cough.
Also missing a year or 2 could be good depending on circumstances.
I helped my neighbour claim, pension credit, Council tax reduction only £1.23 a week now and £2 a week rent for her 
flat. 50% of water as well.
Most are 1k a year better off.
I help most of my neighbours.
The ones on a full pension pay £5-6 council tax and £16 ish rent.

QrizB

paulalawson said:

I need to make up 10 years

When you say "I need to make up 10 years", what exactly do you mean?

Do you mean:

• You don't currently have an entitlement to a state pension, but need to get to 10 years;
• You have 25 full years;
• Your state pension forecast says something like "Forecast if you contribute another 10 years before 2037 is £203.85"?
  

HillStreetBlues

paulalawson said:

HillStreetBlues said:

That is correct, it's the Lower Earnings Limit (LEL) although you won't pay any NI, you will be treated as doing so.
AFAIK The LEL was first introduced in the mid 80's  when it was £35.50pw

I don't believe the LEL is increasing in 2024/25 so once NMW  wage increases 11 hours would meet requirements for anyone like you that's 21 or over.

I worked over 12 hours a few years back for most of the year maybe not all, should I of recieved credits for those months I did, meaning would be a part year of credits? I have nothing of this on my ni forecast ???
Thanks

It you haven't got the credits it's unlikely if you been close to min wage, and just over 12 hours pw as the NMW has risen quicker the LEL
For example 10 years ago 2013/14 The minimum wage was £6.31  and the LEL was £109 so a person would have needed to work 18 hours at min wage to reach LEL

paulalawson

QrizB said:

paulalawson said:

I need to make up 10 years

When you say "I need to make up 10 years", what exactly do you mean?

Do you mean:

• You don't currently have an entitlement to a state pension, but need to get to 10 years;
• You have 25 full years;
• Your state pension forecast says something like "Forecast if you contribute another 10 years before 2037 is £203.85"?
  

I have 25 years 10 missing 

paulalawson

HillStreetBlues said:

paulalawson said:

HillStreetBlues said:

That is correct, it's the Lower Earnings Limit (LEL) although you won't pay any NI, you will be treated as doing so.
AFAIK The LEL was first introduced in the mid 80's  when it was £35.50pw

I don't believe the LEL is increasing in 2024/25 so once NMW  wage increases 11 hours would meet requirements for anyone like you that's 21 or over.

I worked over 12 hours a few years back for most of the year maybe not all, should I of recieved credits for those months I did, meaning would be a part year of credits? I have nothing of this on my ni forecast ???
Thanks

It you haven't got the credits it's unlikely if you been close to min wage, and just over 12 hours pw as the NMW has risen quicker the LEL
For example 10 years ago 2013/14 The minimum wage was £6.31  and the LEL was £109 so a person would have needed to work 18 hours at min wage to reach LEL

It was 20/21 I earned £5,275.98 

Dazed_and_C0nfused

paulalawson said:

QrizB said:

paulalawson said:

I need to make up 10 years

When you say "I need to make up 10 years", what exactly do you mean?

Do you mean:

• You don't currently have an entitlement to a state pension, but need to get to 10 years;
• You have 25 full years;
• Your state pension forecast says something like "Forecast if you contribute another 10 years before 2037 is £203.85"?
  

I have 25 years 10 missing 

Are you 100% certain of that?

Only people who first add NI years after 2016 need exactly 35 years, everyone older fall under transitional rules and depending on your pre 2016 NI history it can range from 28-50 years of qualifying years that are needed.

Ho much State Pension have you accrued by 5 April 2023?

HillStreetBlues

paulalawson said:

HillStreetBlues said:

paulalawson said:

HillStreetBlues said:

That is correct, it's the Lower Earnings Limit (LEL) although you won't pay any NI, you will be treated as doing so.
AFAIK The LEL was first introduced in the mid 80's  when it was £35.50pw

I don't believe the LEL is increasing in 2024/25 so once NMW  wage increases 11 hours would meet requirements for anyone like you that's 21 or over.

I worked over 12 hours a few years back for most of the year maybe not all, should I of recieved credits for those months I did, meaning would be a part year of credits? I have nothing of this on my ni forecast ???
Thanks

It you haven't got the credits it's unlikely if you been close to min wage, and just over 12 hours pw as the NMW has risen quicker the LEL
For example 10 years ago 2013/14 The minimum wage was £6.31  and the LEL was £109 so a person would have needed to work 18 hours at min wage to reach LEL

It was 20/21 I earned £5,275.98 

That's about £101 pw  the LEL at the time was £120
If you were on min wage would have needed to work 14 hours per week (61 hours pm)

paulalawson

Apologies you are correct
I just checked
25 paid
13 where I haven't contributed enough and 13 years ahead 

paulalawson

HillStreetBlues said:

paulalawson said:

HillStreetBlues said:

paulalawson said:

HillStreetBlues said:

That is correct, it's the Lower Earnings Limit (LEL) although you won't pay any NI, you will be treated as doing so.
AFAIK The LEL was first introduced in the mid 80's  when it was £35.50pw

I don't believe the LEL is increasing in 2024/25 so once NMW  wage increases 11 hours would meet requirements for anyone like you that's 21 or over.

I worked over 12 hours a few years back for most of the year maybe not all, should I of recieved credits for those months I did, meaning would be a part year of credits? I have nothing of this on my ni forecast ???
Thanks

It you haven't got the credits it's unlikely if you been close to min wage, and just over 12 hours pw as the NMW has risen quicker the LEL
For example 10 years ago 2013/14 The minimum wage was £6.31  and the LEL was £109 so a person would have needed to work 18 hours at min wage to reach LEL

It was 20/21 I earned £5,275.98 

That's about £101 pw  the LEL at the time was £120
If you were on min wage would have needed to work 14 hours per week (61 hours pm)

That clears that up then lol,  I figure I should up my shifts to 12 hours a week at least, then I will get credits and not have to make voluntary contributions