NI Contributions - 30 years plus for 58 year old

anniem
anniem Registered Posts: 1,326
Help!

Client question:

We sent off for our state pension forecast and I see my husband has paid 39 years of NI contributions, when it seems 30 is the limit required.

Does this mean he needn’t pay any more NI contributions?

Husband concerned is 58 years old. In a partnership. Paying Class 2 NIC.

Can anybody help me answer this one, please?

Anna
FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire

Comments

  • payrollpro
    payrollpro Registered, FMAAT Posts: 427 Dedicated contributor ? ? ?
    Simple Annie,

    The requirement to pay NIC's is determined by his earnings and worker status, not the amount he has achieved towards his state retirement allowance. As a sole trader he is liable for class 2 plus class 4 if the partnership profit share is high enough.

    As long as that continues he will continue to be liable.

    As soon as he stops working, however, you are right, there will be no further requirement to make payments and any demand for class 3 (voluntary) can be ignored.

    As soon as he reaches retirement age, which is either 65 or 66, he will qualify for the full rate as he has at least 30 years worth of contributions.

    The two are closely connected but the requirements are completely separate. Remember that payment of NIC's is geared to the current payment of all state benefits, except tax credits.
  • anniem
    anniem Registered Posts: 1,326
    Thank you muchly :wink:
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
Privacy Policy