National Insurance and tax after State Pension Age

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

At State Pension age, the requirement to pay Class 1 and Class 2 NICs ceases. 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 need to provide your employer with proof of your age.

Your employer remains liable to pay secondary Class 1 employer 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 and are no longer required to pay NICs.

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.

HMRC provides the following example. Someone who reached the State Pension age on 6 September 2023 will stop making Class 4 contributions on 5 April 2024 and pay their final Class 4 bill by 31 January 2025, together with any Income Tax due.

If you have overpaid NICs you can claim the excess back from HMRC.

Latest Blog
03
Jul

What would a closure of the Strait of Hormuz mean for the UK

Tensions in the Middle East have always carried global implications, but few pressure...

Read More
01
Jul

Why every business owner needs an exit plan

For many business owners, the daily focus is on growth, sales, staff, and operations....

Read More
26
Jun

How global unrest could impact the UK economy and your business

At a time when many UK businesses are focusing on recovery, growth, and future planni...

Read More
24
Jun

Winter Fuel Payments reinstated for over 9 million pensioners

The government has confirmed that Winter Fuel Payments will return for the 2025-26 se...

Read More