No NI to pay from State Pension age

Industry News - 13th February 2024

If you have reached the State Pension age and continue to work, in most cases, you will no longer need to pay National Insurance Contributions (NICs).

At State Pension age, the requirement to pay Class 1 and Class 2 NICs ends. However, you will remain liable to pay any NICs due to be paid to you before reaching the State Pension age.

If you continue working, you will need to provide your employer with proof of your age (such as your passport or birth certificate) to confirm that you are no longer required to pay NICs. If you would rather not provide proof of age to your employer, you can request a letter (known as an age exception certificate) from HMRC confirming you have reached State Pension age.

If you are self-employed, you will need to pay Class 4 NICs for the remainder of the year in which you reach State Pension age but will be exempt from the following year.  You will also be required to submit a Self Assessment tax return for each year that you work, this applies even after you reach State Pension age.

Any overpaid NICs can be claimed back from HMRC.

We can help with all of your tax and accounting needs, so contact us if you have any questions.

Internet link: GOV.UK

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