NI contributions and state pension elgibility

[davetza]

I spent a bit of time trying to find the answer to this but have not had any success. If you have two PAYE jobs that are below the annual salary which counts towards a year of contributions for your state pension but added together take you above the threshold for a state pension what happens? Will that year get recognised as one of the 30 needed to contribute to your state pension or not?

[Fred Bloggs]

I spent a bit of time trying to find the answer to this but have not had any success. If you have two PAYE jobs that are below the annual salary which counts towards a year of contributions for your state pension but added together take you above the threshold for a state pension what happens? Will that year get recognised as one of the 30 needed to contribute to your state pension or not?

If you have been in this situation a couple of years, probably the best way to find out is to look at your NIC record and pension forecast through your government gateway account. See if the years are shown as full or not.

[Protagoras]

I spent a bit of time trying to find the answer to this but have not had any success. If you have two PAYE jobs that are below the annual salary which counts towards a year of contributions for your state pension but added together take you above the threshold for a state pension what happens? Will that year get recognised as one of the 30 needed to contribute to your state pension or not?

Generally need 35 qualifying years (it increased from 30 years in April 2016)

https://www.gov.uk/government/statis...-multiple-jobs

Quote " Those who earn less than the LEL in two or more jobs are not liable to pay NI contributions and similarly do not accrue a qualifying year towards the State Pension even if, when combined, their earnings are above the LEL. In other words, earnings from separate jobs cannot be aggregated for pension purposes."

Probably best to check on-line as Fred Bloggs says where you can also get a state pension illustration.

[Peoplesoft bloke]

Due to our stupidly complex NI and Tax system this is a bit odd - there are actually two relevant thresholds - below the LEL (£123 per week for 2022/23) you don't pay NI and you don't get any credit for pension etc.
However, between LEL and the primary threshold (£242 per week) you still don't pay NI but you do get a credit for pension etc (provided you earn this for the year).
Having 2 PAYE jobs is further complicated if they are both with the same employer as they are supposed to aggregate your NI.
https://www.gov.uk/guidance/what-to-...ore-than-1-job

[Protagoras]

Due to our stupidly complex NI and Tax system

+1

Just another example of unfairness in the tax and pension system, especially at a time when it seems having multiple jobs is increasingly common.

[Peoplesoft bloke]

You may be entitled to get NI credits via another means - if you are claiming UC for example, or Child benefit.

https://www.gov.uk/national-insuranc...ts/eligibility

[davetza]

Due to our stupidly complex NI and Tax system this is a bit odd - there are actually two relevant thresholds - below the LEL (£123 per week for 2022/23) you don't pay NI and you don't get any credit for pension etc.
However, between LEL and the primary threshold (£242 per week) you still don't pay NI but you do get a credit for pension etc (provided you earn this for the year).
Having 2 PAYE jobs is further complicated if they are both with the same employer as they are supposed to aggregate your NI.
https://www.gov.uk/guidance/what-to-...ore-than-1-job

Oh wow this is horrible. You think that that SA process would help with this but nope it is up to one of the employers. The HMRC guidance is also useless. It is full of may have to do this or may have to do that and you have to phone the HMRC to do it so good luck finding someone who can actually help you. There must be loads of people with 2 jobs for whom this is an issue so this feels like another reason for me to carry on hating HMRC with a passion.