Any National Insurance experts?
Discussion
My son is 16 and going into 6th form in September, but I believe the credits for education were stopped in 2011?
He has a part time job and has options for hours to work. These options will mean that he has the ability to earn between £120 and £140 a week.
From reading the HMRC website, under the lower limit of £123 a week, he gets no NI credit, but between £123 and £242 a week, you 'seem' to get NI credit without actually paying any NI?
Is that right? And if so, should he make sure he earns at least £124 a week? Is there any benefit of earning more as far as NI is concerned? i.e. once you get NI credit, then you've hit the threshold and earning more doesn't make a difference?
Thanks all for any clarification. It's complicated to say the least!
He has a part time job and has options for hours to work. These options will mean that he has the ability to earn between £120 and £140 a week.
From reading the HMRC website, under the lower limit of £123 a week, he gets no NI credit, but between £123 and £242 a week, you 'seem' to get NI credit without actually paying any NI?
Is that right? And if so, should he make sure he earns at least £124 a week? Is there any benefit of earning more as far as NI is concerned? i.e. once you get NI credit, then you've hit the threshold and earning more doesn't make a difference?
Thanks all for any clarification. It's complicated to say the least!
Yes - you get a "credit" to your NI record once your gross weekly salary exceeds the Lower Earnings Limit - which is currently £123 per week (£523 per month/£6,396 per annum).
NI contributions do not go into a "pot" from which you later withdraw your state pension 60 odd years down the line.The contribution amount is not what matters. What matters is that your contribution is recorded as having happened.
In order to receive the Full State Pension, you need to have made 35 years of contributions over your working life.
That does mean that a person can have gaps in their overall contributions record. All that matters is that they have been able to make 35 years.
If you make less than 35 years, you will still get a pension but it won't be the maximum possible.
If you make less than 10 years contributions, you won't get a State Pension at all.
NI contributions do not go into a "pot" from which you later withdraw your state pension 60 odd years down the line.The contribution amount is not what matters. What matters is that your contribution is recorded as having happened.
In order to receive the Full State Pension, you need to have made 35 years of contributions over your working life.
That does mean that a person can have gaps in their overall contributions record. All that matters is that they have been able to make 35 years.
If you make less than 35 years, you will still get a pension but it won't be the maximum possible.
If you make less than 10 years contributions, you won't get a State Pension at all.
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