State Pension Entitlement – Directors


State Pension Entitlement – Directors

To earn a years ‘stamp’ towards the state pension you need to be paying at or above the lower earnings limit for NI. Even though between the lower limit and the upper limit you do not physically pay NI you still earn your ‘stamp’ for the year provided you earn more than the lower earning limit.

For the current tax year (2013/14) this is £109 per week so annual rate of £5,668. In the current tax year you will earn £7,055 so you will get the entitlement for this year.

This means you can take advantage of the tax efficiencies of paying yourself through your Limited company payroll whilst still knowing that you will gain your entitlement to state pension (for what that’s worth when you come to retire!).

To qualify for a full state pension you have to earn 30 years entitlement across your working life. I know you can get an estimate online to check where you are


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