P1Fanatic

Last month I got overpaid quite significantly by receiving too much overtime (they paid me someone elses who has the same name).

Anyway being the honest employee I informed HR who told me that payroll will just reduce my pay next week to even it out. I got them to send me the exact amounts to make sure I dont lose out. The overall numbers add up and even in my favour to be honest.

However as I paid the extra NI and PAYE on that overpayment theyve had to balance that out. The PAYE seems fine with a refund / positive payment. However they have me down as not paying any NI next month as I dont meet the minimum threshold £111 per week.

Now I thought part of your NI payments were towards your state pension and if you earn enough State 2nd Pension (SSP). So my question (finally) is whether Im losing out in this scenario? I worked out that overall Im paying approx £275 less NI over 2 months than I would with 2 regular paychecks. So surely my NI contributions will suffer and therefore my pension (if I ever get one at retirement is another question)?

Cheers
Simon

KevPage

One week without paying NI will not make any difference to your pension.

iirc to get your credit for the year you have to have at least 39 weeks of contributions out of 52.

P1Fanatic

Thats pretty much what the HMRC helpline told me although Im not sure I really understand why. If I pay NI every month normally (Im sure I do) then surely if I dont pay £275 then there is a shortfall somewhere?

Simon