National Insurance contributions below the threshold

80stoyfan

Hi,
Just wondering, is there a way to voluntarily pay for NI if you earn below the £12,500 threshold? Or should I just put money aside each month to pay off yearly gaps in my record? Due to my jobs being casual I can't see me ever earning over £12,500 between now and me retiring! I currently have at least 10 years so I will get a pension but not the full amount according to my record. It seems daft that I can't opt in to paying NI. I'm currently putting £25 into savings per month so that I can pay off 2022/2023 gaps in 2029.

swindiff

The lower earnings limit to qualify for state pension is only £123/week or  £6396/year.  So as long as you are earning over this amount, there is no need to make any voluntary contributions.

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

SVaz

Yes, as long as you earn over the LeL, you are treated as having paid NI. 

I don’t know if the threshold is changing for 25-26, given that Employers will have to pay employers NI at £5000 ( unless they can claim employer’s allowance) .

molerat

LEL increasing to £125 for 25-26.

SVaz

Looks like I’m giving my Wife a pay rise from April then! 

She’s going to be right on the limit otherwise. 

I thought they might have lowered it to match the employer limit of £5k tbh. 

80stoyfan

Is this taken out of your pay if you're PAYE? Also my pay varies each week as it's casual so what happens if I'm not earning £123 a week?

80stoyfan

80stoyfan said:

Is this taken out of your pay if you're PAYE? Also my pay varies each week as it's casual so what happens if I'm not earning £123 a week?

To add-when I do earn more than £123 a week, there is nothing on my pay slips that says I've paid NI

QrizB

80stoyfan said:

Is this taken out of your pay if you're PAYE?

At £123 a week there's no employee NI to pay, so it won't show on your payslips.

80stoyfan said:

Also my pay varies each week as it's casual so what happens if I'm not earning £123 a week?

You won't get credits for weeks where you earn less than £123. You'll have partial years and will have to buy the balance, if you want it to count towards your state pension.

molerat

QrizB said:

80stoyfan said:

Is this taken out of your pay if you're PAYE?

At £123 a week there's no employee NI to pay, so it won't show on your payslips.

80stoyfan said:

Also my pay varies each week as it's casual so what happens if I'm not earning £123 a week?

You won't get credits for weeks where you earn less than £123. You'll have partial years and will have to buy the balance, if you want it to count towards your state pension.

Plus your NI record will not show how you got the credits, it will purely state full year or you need to pay £xxx.xx for the part year with no explanation.

80stoyfan

molerat said:

QrizB said:

80stoyfan said:

Is this taken out of your pay if you're PAYE?

At £123 a week there's no employee NI to pay, so it won't show on your payslips.

80stoyfan said:

Also my pay varies each week as it's casual so what happens if I'm not earning £123 a week?

You won't get credits for weeks where you earn less than £123. You'll have partial years and will have to buy the balance, if you want it to count towards your state pension.

Plus your NI record will not show how you got the credits, it will purely state full year or you need to pay £xxx.xx for the part year with no explanation.

Thanks. So do employers pay for the £123 a week rate? 

SVaz

Nobody pays,  that’s the whole point,  they are credits for low earners. 

I pay my Wife £580 a month, neither she nor I pay a penny in NI,  she gets the credits.  

Employers will start to pay at £5000 come April,  although they will have an allowance which means they won’t pay the first £10k.