National Insurance contributions and gap years

Hello, I have a question regarding National Insurance contributions and pension gap years. I understand that if I am employed and earn between £6,396 and £12,570, even though I am not paying National Insurance contributions, I would receive "free National Insurance credits," and this would not be considered a gap year for the pension. Is that correct? However, when I view my National Insurance record, I can see that for those years where I earned between these amounts, (i.e I earned £10,000 in 2021-2022) it says "Year is not full." I'm confused about whether I need to pay to fill these gaps or if these years still qualify for the pension if not paid. Thanks

Hi,
Yes, this is correct, if you earn between the lower earnings limit (£6396 for the 2024-2025 tax year) and the primary threshold (£12570 for the 2024-2025 tax year) you will not pay class one National Insurance contributions on these earnings but the earnings that you have received will count towards a qualifying year for pension purposes.
For the 2021-2022 the lower earnings limit was £6240 and the primary threshold was £9568.
Further information on National Insurance contributions thresholds can be found here - National Insurance: introduction How much you pay
If any years where you have earned above the lower earnings limit are shown as ‘not full’ you will need to contact the National Insurance helpline to check that the employment is shown on your records. The number to ring is 0300 200 3500, lines are open from 8am to 6pm, Monday to Friday.
Thank you.

Hello, Thank you for your response. Could I please check whether dividend income or other self employed income affects these limits ? 1) If I am employed and earn between £6,396 and £12,570, but also receive dividends of £10,000, are my employed earnings count towards a qualifying year for pension purposes without paying class one National Insurance contributions? 2)If I am employed and earn between £6,396 and £12,570, but also receive self employed income of £10,000, are my employed earnings count towards a qualifying year for pension purposes without paying class one National Insurance contributions? Thank you.

Hi,
Dividend payments received should be declared through Self Assessment so the correct amount of tax is paid.
National Insurance will not be due and you can not register as self employed for the receipt of dividends.
No class 1 National Insurance contributionss are due on dividends and therefore do not count towards the UK State Pension.
Thank you.