Tax credits and notional/market rate income for PSC Director

[Ardesco]

Zero.

If you earn between the LEL and the primary threshold you still get the years pension credit but pay zero in NI.

Hmm, I got a letter a few years back stating that I hadn't paid enough NI when I was at Uni and that I needed to either pay them a lump some of around £100 (I think it was around£100 anyway). The letter stated that if I did not pay them I would not be able to claim my state pension until I had worked an extra year.

I got some advice at the time and was told I may as well pay it as potentially it is worth a lot more than the £100 I was paying them. Yes it may be worth nothing when I'm old but as gambles go it has better odds than most.

[Sockpuppet]

Couple of hundred a year I think? They will send you a letter if you haven't paid enough saying that you can either pay them a lump sum of £XXX or delay your state pension by a year.

I think on £12k a year salary I am paying enough.

[dude69]

Hmm, I got a letter a few years back stating that I hadn't paid enough NI when I was at Uni and that I needed to either pay them a lump some of around £100 (I think it was around£100 anyway). The letter stated that if I did not pay them I would not be able to claim my state pension until I had worked an extra year.

I got some advice at the time and was told I may as well pay it as potentially it is worth a lot more than the £100 I was paying them. Yes it may be worth nothing when I'm old but as gambles go it has better odds than most.

Hmm, that's probably because you didn't work full time or something. Paying over LEL or whatever it is called means you earn NI stamp, but don't start paying it till your income is a little higher.

I have never found anything to explain the arcane workings of how much each pound of national 'insurance' earns you in benefits on retirement

[ASB]

Hmm, I got a letter a few years back stating that I hadn't paid enough NI when I was at Uni and that I needed to either pay them a lump some of around £100 (I think it was around£100 anyway). The letter stated that if I did not pay them I would not be able to claim my state pension until I had worked an extra year.

I got some advice at the time and was told I may as well pay it as potentially it is worth a lot more than the £100 I was paying them. Yes it may be worth nothing when I'm old but as gambles go it has better odds than most.

If I recall correctly the rules were different a few years ago. However if your time at UNI was recent then I imagine it is because you didn't earn over the LEL.

In any event the 100 quid was probably a very good spend.

You can actually do pension forecasts on line now so you can check your contribution record to decide if you need to make voluntary payments.