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NI contribution condtions

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1 year 10 months ago #277883 by Olive
NI contribution condtions was created by Olive
Hi,

If you are claiming contribution based New style ESA, can you tell me how the following sentence applies:-


"Second contribution condition - in both of the last two complete tax years, you must have paid or been credited with, Class 1 or 2 contributions to the value of 50 times the lower earnings limit"

In the year 2020/21 - lower earnings limit was £120 per week

Does this mean you have to have worked 50 weeks @ £120 = £6000

Or, could you have worked 25 weeks @ £130 + 25 weeks @ £110 = £6000 ?

Thanks

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1 year 10 months ago #277934 by Gordon
Replied by Gordon on topic NI contribution condtions
Olive

I have to admit that I have always treated it as weeks even though the actual Regulations do say "times". I say this on the basis that NI Credits are calculateded based on your pay period e.g. weekly, 4-weekly, monthly, etc.

So I don't think your second example works as there are weeks (pay periods) that you are under the LEL and therefore would not receive any Credits.

You also need to be aware that the LEL applies to each case of employment not the total of them, so if you had two jobs totalling £220 (2 x £110) then you would not receive any Credits as neither job has exceeded the LEL.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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1 year 10 months ago #277937 by Olive
Replied by Olive on topic NI contribution condtions
Thank you Gordon for your reply.

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