National Insurance - I'm confused !

TYPHOON38

Folks,
can anyone help my old addled brain to understand where I stand with my NI contributions ? I paid 42 years full contributions up until 2020 as I was always employed - in 2020 I became self employed / director of my own limited company (just me). So I've been paying my self assessment tax and my corporation tax on time etc.. Just looking at my NI record and it says I have a shortfall from 2021-22, and didn't pay anything 2022-23 so another shortfall, and should pay them before 2025 and  2028 respectively. When I recently noticed another year that wasn't 'full', and contacted HMRC asking how to pay, the lady told me not to pay anything as I have already reached the point where I'll get the full state pension in 2029. So - do I 'owe' national insurance or not ? Any help would be appreciated !

BoGoF

What does your pension forecast in your Personal Tax Account show?

Are you paying yourself a salary below the lower earnings limit for Class 1 NIC?

Dazed_and_C0nfused

TYPHOON38 said:

Folks,
can anyone help my old addled brain to understand where I stand with my NI contributions ? I paid 42 years full contributions up until 2020 as I was always employed - in 2020 I became self employed / director of my own limited company (just me). So I've been paying my self assessment tax and my corporation tax on time etc.. Just looking at my NI record and it says I have a shortfall from 2021-22, and didn't pay anything 2022-23 so another shortfall, and should pay them before 2025 and  2028 respectively. When I recently noticed another year that wasn't 'full', and contacted HMRC asking how to pay, the lady told me not to pay anything as I have already reached the point where I'll get the full state pension in 2029. So - do I 'owe' national insurance or not ? Any help would be appreciated !

That has never been stated on your NI record.

Why not simply read your forecast, the full detail.

Then you will actually know where you stand.

p00hsticks

TYPHOON38 said:

 I have already reached the point where I'll get the full state pension in 2029. So - do I 'owe' national insurance or not ? Any help would be appreciated !

There's really two separate questions there.

Firstly, whether you have already made enough NI contributions to qualify for a full state pension. As BoGof says ,your State Pension forecast will show this - if it says something like 'your forecast is £203.85' and 'You cannot improve your forecast any further' rather than 'you need to continue to contribute to reach this amount' then you have enough. 

but you don't just stop paying NI when you reach that point - as I think the forecast says somewhere, if you continue working then you may still be obliged to pay if your earnings are high enough. So the second question is whether you need to make payments from your employment - and  that's really for you (as director of the company) and /or your accountant to determine. 
    

TYPHOON38

Thanks - the forecast does indeed say that I can't improve it any further, so I'll have a chat with my accountant next week and see what to do next. Thanks for replying so quickly. 

Marcon

TYPHOON38 said:

Thanks - the forecast does indeed say that I can't improve it any further, so I'll have a chat with my accountant next week and see what to do next. Thanks for replying so quickly. 

I think you might be able to answer your own question:

Directors are classed as employees and pay National Insurance on annual income* from salary and bonuses over £12,570. Contributions are worked out from their annual earnings* rather than from what they earn in each pay period.

[*From your limited company]

 https://www.gov.uk/employee-directors