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Where Taxpayers and Advisers Meet

Low NIC counting as full year - confused.

Liv
Posts:1
Joined:Fri Dec 18, 2020 10:42 am
Low NIC counting as full year - confused.

Postby Liv » Fri Dec 18, 2020 11:08 am

Hi there,
I want to make sure that as many years as possible count towards the state pension. I am both employed and self-employed. I have checked my national insurance record and see that for the 19-20 tax year my employer has paid £21 in NICs. This has been counted as a full year on the record. Similarly, my employer has paid £40 for the previous year, also counted as a full year. My self employment income for these years is below the £6000 threshold so payments would be voluntary (and I didn't pay any voluntary). What I don't understand is how can such low amounts of £21 and £40 count towards a full year in the NI record (I checked my record and they both say full year)? If they have been counted as a full year, then why would I want to pay any more voluntarily?
Thanks.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Low NIC counting as full year - confused.

Postby robbob » Fri Dec 18, 2020 3:37 pm

What I don't understand is how can such low amounts of £21 and £40 count towards a full year in the NI record (I checked my record and they both say full year)? If they have been counted as a full year, then why would I want to pay any more voluntarily?
Your employer doesnt need to pay any national insurance for you to qualify for your stamp - you simply need to be paid over the lower earnings threshold by that employer - the monthly trheeshold was only £512 per month last year
If they have been counted as a full year, then why would I want to pay any more voluntarily?
You probably wouldnt want to - however stamp does qualify you for limited other benefits so you may be very well advised paying it if you fall into that minority bracket - perhaps employment support allowance or matenrity allowance being the two that would spring to mind.
Psychic powers probably help in that regard - albeit you can probably change your mind and pay class2ni voluntarily if you know that would qualify for one of those benfits if you didnt qualify for similar via employment or other avenues of attack (legal not holdup variety).


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