I know that a year in which the director is paid 12 monthly salary payments of the LEL will qualify as a year towards the State pension.
However, does the year still count if instead just one salary payment is made in the year equal to 12 x LEL? So 11 x £0, then 1 x £6,240.
Replies (4)
Please login or register to join the discussion.
Yes, but you MUST ensure that the director's flag is set in the software.
I've always thought however that this is a potentially dangerous ploy. Most of my director clients are paid at least the Primary Threshold so some, albeit a small amount, of NI is paid. This has always forced HMRC to actually process the figures, particularly in the pre RTI and manual P14 days. If this is done it will be much easier to prove entitlement 20 or 30 years down the line when NICO say they have no record or missing years.
Also the recent CJRS debacle surrounding annual schemes makes this a dangerous policy to follow.
Yes we (used to pre covid) run annual directors PAYE like that and I know it shows up on the pension record all fine.