National Insurance credits how much do I need to earn

catkins88

I work part time and don't pay National Insurance. I think that if I earn over £7,000 but less than £10,000 per year and complete self assessment, I automatically get National Insurance credits and they count toward state pension. So if I earn £7,500 this tax year I will get the credits and won't have to pay to make up for a missing year. I have 31 qualifying years on my state pension and intend to work for the next 5 years so am I right in thinking with my current earnings that I won't have to pay to top up my state pension if my earnings continue to be as stated?

Dazed_and_C0nfused

catkins88 said:

I work part time and don't pay National Insurance. I think that if I earn over £7,000 but less than £10,000 per year and complete self assessment, I automatically get National Insurance credits and they count toward state pension. So if I earn £7,500 this tax year I will get the credits and won't have to pay to make up for a missing year. I have 31 qualifying years on my state pension and intend to work for the next 5 years so am I right in thinking with my current earnings that I won't have to pay to top up my state pension if my earnings continue to be as stated?

Why are you filing a Self Assessment return 🤔

sammyjammy

National Insurance is related to how much you get paid on a weekly basis not an annual basis, for every week you earn between £123 and £242 you will be treated as if you are paying NI ( its not a credit as such).

Rates and allowances: National Insurance contributions - GOV.UK

chrisbur

sammyjammy said:

National Insurance is related to how much you get paid on a weekly basis not an annual basis, for every week you earn between £123 and £242 you will be treated as if you are paying NI ( its not a credit as such).

Rates and allowances: National Insurance contributions - GOV.UK

Not quite that simple.  Any earnings that fall below the lower earnings limit LEL (ie. £123 a week at the moment) will not be reported to HMRC.  Earnings above the LEL and up to the upper earnings limit UEL (ie £967 a week at the moment ) will count towards getting a years contribution requirement if they are at or above 52 times the weekly LEL.

Dazed_and_C0nfused

chrisbur said:

sammyjammy said:

National Insurance is related to how much you get paid on a weekly basis not an annual basis, for every week you earn between £123 and £242 you will be treated as if you are paying NI ( its not a credit as such).

Rates and allowances: National Insurance contributions - GOV.UK

Not quite that simple.  Any earnings that fall below the lower earnings limit LEL (ie. £123 a week at the moment) will not be reported to HMRC.  Earnings above the LEL and up to the upper earnings limit UEL (ie £967 a week at the moment ) will count towards getting a years contribution requirement if they are at or above 52 times the weekly LEL.

Not quite that simple.

If it is earnings for an employer who is registered with HMRC, which will be the overwhelming majority, then earnings that fall below the lower earnings limit are still reported to HMRC.

They just don't help towards getting a qualifying year.

chrisbur

Have to admit that I was remembering the old paper returns for columns 1a 1b and 1c probably different now with RTI
1a Earnings at the LEL (where earnings are equal to or exceed the LEL)
1b Earnings above the LEL, up to and including the PT
1c Earnings above the PT, up to  and including the UEL
There was no column for earnings under the LEL though from the other columns you could work it out.