How much to earn in a year to count for state pension

[granville997]

hi
Thinking of Retiring in the coming tax year is there a amount i would have to earn from employment or a number months to count as a full year for state pension?
thx

[B9]

Which said:

Who qualifies for basic state pension? If you're working If you earn at least £116 a week (£6,032 a year), or are receiving working tax credit, you'll be making National Insurance contributions to the state pension. Or you're self-employed, and paying what's known as Class 2 National Insurance contributions.

https://www.which.co.uk/money/pensions-and-retirement/state-pension/your-state-pension-and-benefits/how-do-i-qualify-for-state-pension-a74hl7u86kpr#headline_4

[Stay in Bed Instead]

granville997 said:

hi
Thinking of Retiring in the coming tax year is there a amount i would have to earn from employment or a number months to count as a full year for state pension?
thx

If applicable, to get the state basic credit on your NI history it's £6136 for 2019-20. I think 2020-21 will be confirmed on the Budget next week.

However of you already have sufficient NI history you may not need to do this. You can check via your government gateway.

[granville997]

Thanks
I have checked and 1 year short at the beginning of new tax year. So if i earn in excess of £6136( open for adjustment in next buget) be that 1 pay packet not 12 would that qualify?

[mikeiow]

granville997 said:

Thanks
I have checked and 1 year short at the beginning of new tax year. So if i earn in excess of £6136( open for adjustment in next buget) be that 1 pay packet not 12 would that qualify?

I'm in an almost identical position......& yes, my firm understanding (belief) is that it is just the sum earned that needs to reach that magic number, not the need to earn it over X months. 99.999% certain, at least......

Given how markets are behaving, I may end up working a bit longer....although I also *personally* feel that the best time of year to bail would be May-June: a summer stretching ahead, the potential for some tax refund later (if 40% payer but only earning less).....if I continue to Sep/Oct, I may well work through another winter!

[Stay in Bed Instead]

granville997 said:

Thanks
I have checked and 1 year short at the beginning of new tax year. So if i earn in excess of £6136( open for adjustment in next buget) be that 1 pay packet not 12 would that qualify?

Yes, but unless you are a Director you will pay NI on £6000 for one month remember.

[granville997]

thanks everyone.
no problem paying NI on the magic number if it gets a full year.
mikeiow are you a anything to do with cans?
thanks again

[troika]

Stay in Bed Instead said:

granville997 said:

Thanks
I have checked and 1 year short at the beginning of new tax year. So if i earn in excess of £6136( open for adjustment in next buget) be that 1 pay packet not 12 would that qualify?

Yes, but unless you are a Director you will pay NI on £6000 for one month remember.

I think you can pay the salary as a lump sum advance at the beginning of the tax year to avoid that issue.

Pay yourself between the lower earnings limit and the primary threshold and you’ll receive an NI qualifying year without actually paying any NI,

Edited by troika on Thursday 5th March 18:26

[mikeiow]

granville997 said:

thanks everyone.
no problem paying NI on the magic number if it gets a full year.
mikeiow are you a anything to do with cans?
thanks again

cans?
er....no! Tech stuff....US firm