Pollyana

So while I was living in Aus I made up my NI contributions on Class 2, to qualify for a full UK State Pension.

The very last bit was sent at the last minute, and after leaving Aus and coming home I got a letter from HMRC, forwarded from Aus, saying I had overpaid. This was followed 6 months later by a cheque for about £100, which was apparently the over-payment.

So, checking online, I now have a full record and qualify for a full pension. Now I've started working part-time, and I guess my employers will ne paying NI on my earnings, So its just occurred t me, that if they returned part of the last payment, saying I was paid-up, will I still need to pay NI on my earnings? Will I get a refund at the end of the year, as I will on my tax as I will be just below the tax-paying threshold? Never encountered this situation before, so just wondered if anyone else had come across it!

Pulaski

If you work in the UK, at any age up to standard retirement age,* you pay NI, full stop. ... Anyone who lives and works their entire life in the UK, so working from, say, age 18-66, will have contributed for 48 years. That is normal, and how the system works. If you're paying additional voluntary contributions, you can overpay, but not if you're working in the UK.

After standard retirement age, if you're working, you are not required, nor even allowed, to make NI contributions.

spouse of scouse

You'll continue to pay NI until you reach State pension age, if your income from your job is over £242 per week. No NI is payable if your per week income is £242 or less.

Pollyana

Ah that makes sense now. I assumed I would be paying NI here once I started working again (though its only casual and there won't be many weeks that top £242. And its term time only so no work at all for part of the year.
It was just the fact that I got a refund that confused me, but I guess thats cos I had overpaid on the voluntary contributions before I came home, and long before I started working here

Cheers guys

Pulaski

And FWIW you don't pay NI on earnings over £967/wk.

RICH

Wow That is quite a loophole. Does not apply to many, but likely the ones who put it in place.

Pulaski

I'm sure it applies to plenty in London - that's only £50,422/yr and is far from unusual for white collar jobs. ..... In fact a quick Google search revealed that average salary for a teacher in London is £39k, that the range extends up to £48k, with additional payments up to £3k. And that's just for "teachers", not department heads who are going to earn more than the base rates for teacher. So with even teachers reaching the cap for NI charges, you can bet that there are many other employees earning more than that. It's apparently very similar for nurses, again with matrons/ ward managers potentially earning substantially higher salaries, and it's slightly higher for police, obviously again with higher pay for higher ranks.

christmasoompa

It only applies to those of state pension age or older, same as any other earnings. Those earning that amount who are younger still pay it.

Pulaski

You have either missed, or misread, what I posted, which Rich responded to, which has nothing to do with "state pension age". There is a salary ceiling, at £967/wk ($50,422/yr) above which NI contributions are not assessed.

christmasoompa

https://www.gov.uk/national-insurance-rates-letters

spouse of scouse

Pulaski

Oh, OK, I see NI is now 2% of salary on amounts above the ceiling figure I mentioned.

Thx.

christmasoompa

The figures in the last column of the table.

Pulaski

I saw that a moment after posting, and went back and completely changed by my post; I hadn't noticed that you had already replied to it. Thx.