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Lower earnings NI contributions

7 replies

ChocolateIsAlwaysTheAnswer · 18/03/2022 18:22

Best friend earnt £125 at job this week (differs weekly as on zero hour contract). No NI contribution was taken, I was always under the impression that the employer paid it on your behalf if the earnings was between £120-£184 a week?

OP posts:
Aprilx · 18/03/2022 19:40

No that is below the threshold for employer contributions too.

ChocolateIsAlwaysTheAnswer · 18/03/2022 22:11

I'm confused as I read that it gets paid if you earn between £120-£184 or you get something added as if you had paid?

OP posts:
Chasingsquirrels · 18/03/2022 22:28

That is correct OP.
It is charged, but at a 0% rate.
So you get NO credits, but no payments are actually paid.

Lower earnings NI contributions
Lower earnings NI contributions
Chasingsquirrels · 18/03/2022 22:29

NI NO credits (grr autocorrect)

ChocolateIsAlwaysTheAnswer · 18/03/2022 22:43

Still don't really understand. Does it not contribute towards anything then if your earnings fall between the £120-184 category and if not, why does it say on numerous websites that it does?

OP posts:
Chasingsquirrels · 19/03/2022 07:22

My post SHOULD have read (as corrected below it)

That is correct OP.
It is charged, but at a 0% rate.
So you get NI (national insurance) credits, but no payments are actually paid.

So you get the credits as if payments have been made, but no payments are actually made.

It's a bit like home responsibility credits (if you are at home with kids you are receiving child benefit for), you get the credits for the year but no NI is actually paid.

ChocolateIsAlwaysTheAnswer · 19/03/2022 09:14

I guess it then still counts towards the contribution of NI payments then.
Thanks, will let her know.

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