I have set up as a sole trader and whilst I managed to research and find out most of what I need to know, I'm struggling with National Insurance, from a state pension credits perspective
I'm aware that earnings need to be at least £112 per week to qualify for state pension credits and that NI has t be paid by 31st Jan the following year etc, but I can't find any information confirming how the pension credits are calculated when NI is paid in a lump sum like that.
For example, do they divide the total NI paid across the previous year in question and ascertain that an average of more than £112 per week was earned and retrospectively apply the state pension credits to the full 12 month period?
Or do they need a full week by week report on what was earned and then only pay credits for weeks that were over the threshold, even if the total was over the £112 p/w as an average?
I could do with some definite answers if anyone has any on how credits are earned, applied and measured when NI is paid annually.
My ultimate objective is to ensure that I don't miss out on state pension credits and that I report correctly to facilitate this, without having to resort to the far more expensive voluntary contributions.
Thanks in advance.
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Sole Trader - National Insurance Question
35 replies
WillWorkForFood · 01/01/2019 17:23
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