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Get the guidance you need to stay focused and reach your goals. About Blog Terms. Privacy Policy Your Data. These letters are generally sent out between September and January each year. The letter isn't a demand - but it will tell you how much you can pay if you want to fill the gaps and how you can pay if you opt to do so.
You can check whether you're likely to have a gap in your National Insurance contributions record by requesting a State Pension statement from the Future Pension Centre.
Their office is in England. If you've lived abroad you can ask about any shortfall in your National Insurance record. It's up to you whether you make up any shortfall. You should consider carefully whether you need to top up at all. At the same time, you will need to bear in mind the number of qualifying years required to be eligible for certain bereavement benefits.
You should request a State Pension statement to see if there is any NIC shortfall and decide if you need to make up any gap in your contribution. If you're unsure, Advice NI or other free advice organisations may be able to help you.
If you consult a financial adviser, they might charge you for their advice. You must be eligible to pay voluntary National Insurance contributions for the time that the contributions cover. You usually have to make up the shortfall within six years of the end of the tax year for which the contributions are being paid. However there are extended time limits for some tax years and special rules if you reach State Pension age on or before 5 April For more information on deadlines for paying voluntary National Insurance contributions read HMRC's guide 'When and how to pay voluntary National Insurance contributions':.
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Comments or queries about angling can be emailed to anglingcorrespondence daera-ni. If you have a comment or query about benefits, you will need to contact the government department or agency which handles that benefit. Contacts for common benefits are listed below. You have until you reach state pension age to make those contributions. As well as paying tax on a second job, you might have to pay some National Insurance contributions NIC on that second income as well. However National Insurance operates in a different way from income tax.
With tax there is a single tax-free amount available per person per tax year. For National Insurance there is a separate limit for each job so long as it is with a different employer.
Unless you are a director of a company, normally each employment you have is looked at separately for NIC purposes. This means that each job has the full lower threshold, but that you may pay NIC on each job. If the employers are associated, though, for example if you work for two different branches of a supermarket, then your earnings should be added together for NIC purposes.
If you are not sure whether your employments are associated then you should ask your employer. You can find more information on our page Having more than one job. If you need them there are guidance notes you can download from the same page of GOV. Look at example Anya to see how to work out your NIC if you have more than one job. Your Class 4 NIC are paid together with your income tax liabilities in your payments on account and balancing payment. Where someone is both employed and self-employed there is an annual maximum of contributions that is due.
You can read more about NIC for the self-employed in our self-employment section. Normally, employees do not pay Class 1 NIC on benefits and expenses even if they are taxable, although there are some exceptions. For example, you do not have to pay Class 1 NIC on the cash equivalent of the benefit of an interest-free or low-interest loan a 'beneficial loan' from your employer, although you may have to pay income tax on any benefit.
If your employer writes off or waives the loan, they will deduct Class 1 NIC and income tax from your other wages through the payroll based on the value of the loan that has been written off. On GOV. UK , you can use the A to Z list of expenses and benefits to see the tax and NIC treatment of any benefits your employer gives you.
Although this is aimed at employers, it will also be useful to employees. Sometimes you see the NIC thresholds given in annual amounts, as well as weekly or monthly amounts. However, you pay Class 1 NIC based on the amount you earn in each pay period, whether that is a week or a month. You do not pay Class 1 NIC based on your total earnings for the whole year. If you earn more than the primary threshold in any particular pay period, weekly or monthly, you pay Class 1 NIC, even if your annual earnings divided by 52 weeks or 12 months are less than the primary threshold.
If your earnings fluctuate, you may find that you pay NIC in some pay periods but not in others. Look at the example Emily and example Ali to see how this works. If you are employed part-time and only work a few hours a week, you may deliberately keep your earnings below the lower earnings limit for NIC, so that you do not have to pay any Class 1 NIC.
If you are asked to work more hours, you may be worried about the effect on your NIC liability. You should be aware that NIC can 'buy' benefit and pension entitlement. For state pension purposes, a year only counts as a qualifying year if you pay sufficient contributions for that year. Earnings below the lower earnings limit do not generate a qualifying year.
However, you can sometimes get NIC credits, for example if you look after a child or disabled person. You pay NIC at an effective nil rate, but this can 'buy' entitlement to contributory benefits and the state pension. Therefore, if it is possible for you to work additional hours to bring earnings between the lower earnings limit and primary threshold, this will be beneficial and will give you the benefits of the NIC system for no extra cost.
You might need to take advice. Look at the example Lucy to see how this works. You may also find our news piece Any questions? You can find more information about this on GOV. Salary sacrifice is not always a good idea for low earners, and there is one particularly unfavourable situation set out below to be aware of.
Also, you cannot participate in salary sacrifice schemes where your pay would be reduced below the national minimum or living wage.
Nevertheless, salary sacrifice can benefit you in some circumstances. From 6 April there have been fewer opportunities to benefit from such an arrangement. Below we explain how such arrangements work, what items may be included in any arrangements from 6 April and the changes that have been made to any arrangements that were already in place at 5 April Your employer may offer a salary sacrifice scheme that enables you to swap cash salary for non-cash benefits.
The position changed dramatically from 6 April From that date broadly any salary that is given up in exchange for benefits remains liable to tax and NIC as usual with no additional tax charge arising in connection with the benefit obtained in exchange , unless the cost to the employer is more than the salary given up: in that case the higher value is used.
These used to be particularly efficient where the non-cash benefit was exempt from both tax and NIC. Even if the benefit provided in exchange for the cash salary was not exempt from tax, you normally saved NIC. So you saved your Class 1 NIC liability.
Any tax and NIC savings were maintained on all existing arrangements until at least 5 April This means that where you had an existing salary sacrifice arrangement, it may have ceased to be effective from 6 April unless it related to one of the approved benefits described above. Arrangements relating to cars, accommodation and school fees remained protected until April You can read more about salary sacrifice schemes and the 6 April changes on GOV.
Although salary sacrifice can sound attractive, if you are a low earner, the advantages are limited. If the salary sacrifice reduces your earnings below the lower earnings limit, this is even more dangerous.
This means that you lose entitlement to contributory benefits and the state pension, if you do not receive NIC credits in another way. This is a particular worry if your pre-sacrifice salary was between the lower earnings limit and the earnings threshold, where you would have been entitled to NIC credits. Look at the example Kerry to see how salary sacrifice works.
Your employer may have to pay Class 1A NIC on the value of the taxable benefit, if the loan is a beneficial loan. If your employer writes off or waives the loan, they will deduct Class 1 NIC through the payroll based on the value of the benefit.
If you later repay a loan on which Class 1 NIC has been charged, then depending on how much you actually repay, the appropriate amount of Class 1 NIC charged should be repayable to you. An advance of pay, or a sub, is effectively a loan. It is not normally liable to Class 1 NIC at the date of the advance.
Instead, your employer should collect the Class 1 NIC due on the advance at the time your pay would have normally been due — your usual pay day. If you are off work as a result of an injury or accident, and your employer makes you a loan while you are waiting for the result of a claim for damages, the loan is treated as earnings for NIC purposes at the date of payment, unless you are obliged to repay it, whatever the outcome of the claim.
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