State Pension qualifying year checker for limited company directors

If you run a limited company, paying yourself a salary helps make sure each tax year counts towards your UK State Pension.

However, a tax year will only qualify if your salary is at or above the Lower Earnings Limit (LEL) for that year.

Use this checker to confirm whether your annual salary means the tax year in question is a qualifying year.

State pension qualifying year checker

What is a ‘qualifying’ year?

Your salary must be at or above the Lower Earnings Limit (LEL) for the year to qualify, even if you (as the employee) don’t actually pay any Class 1 National Insurance for the year in question.

Current and past LEL thresholds

The LEL is reviewed annually and typically increases in line with inflation. Here are the confirmed annual figures for recent tax years:

• 2026/27 (current, to 5 April 2027): £6,708
• 2025/26: £6,500
• 2024/25: £6,396

You can verify the latest rates and thresholds here.

Why the Lower Earnings Limit matters

The LEL is not the same as the Personal Allowance (£12,570) or the National Insurance thresholds at which contributions start (the Primary Threshold for employees and the Secondary Threshold for employers).

It is a separate threshold used to determine whether a year counts for State Pension purposes under the Class 1 National Insurance system.

This is why many limited company owners consider it when setting their annual salary levels.

Between the LEL and the Primary Threshold (£12,570), you’re effectively “treated as paying” Class 1 NI for State Pension credits.

Even though no employee NI is deducted from your pay packet below £12,570, you still secure a qualifying year.

Directors and annual earnings

Unlike employees’ eligibility, which is assessed on a monthly or weekly basis, company directors are assessed on an annual earnings period for Class 1 National Insurance purposes.

Your company can pay directors a low annual salary (the most tax-efficient level is £12,570).

There will be an employer’s NIC liability (unless you can use the Employment Allowance).

However, there is no employees’ NICs liability, as the primary threshold is £12,570 (where employees start paying Class 1 NICs).

And, of course, the level is way above the current Lower Earnings Limit.

How many qualifying years do you need for the State Pension?

You usually need 35 qualifying years to receive the full new State Pension, which is currently £230.25 per week.

You need at least 10 qualifying years to receive any State Pension.

The exact amount you receive is prorated based on the number of qualifying years you have accumulated.

To view your contribution record and the number of qualifying years you have, check your State Pension forecast on GOV.UK.

How to fill gaps in your State Pension record

• National Insurance credits: You may qualify automatically for credits (which count as qualifying years) for periods of childcare, caring for someone, unemployment, illness, or jury service, even if you haven’t earned a salary during all of the years.
• Voluntary contributions: If you have any gaps in your State Pension record, you can pay Class 3 voluntary NI contributions (or Class 2 in some cases) to fill them. However, this is often more expensive than paying a small salary through your company.
• Self-employment: If you have other self-employed income, you can make Class 2 NI payments to help build qualifying years.

Please use this tool and the guide for illustrative purposes only. Talk to an accountant or financial adviser if you have any questions about your own situation. You can check your personal State Pension forecast at GOV.UK.