National Insurance and tax after State Pension age
2. Stop paying National Insurance
You pay National Insurance contributions to qualify for certain benefits including the State Pension.
What happens at State Pension age
At State Pension age:
- you stop paying Class 1 and Class 2 contributions, even if you’re still working
- you still have to pay Class 4 contributions if you have taxable profits from the year you reach State Pension age - the next year, you’ll be exempt
If you’re self employed, you still need to send a Self Assessment tax return for the year you reach State Pension age.
You can claim back National Insurance if you’ve overpaid.
If you continue working
Show your employer proof of your age (a birth certificate or passport, for example) to make sure you stop paying National Insurance.
If you don’t want your employer to see your birth certificate or passport, HM Revenue and Customs (HMRC) can send you a letter to show them instead.
The letter will confirm:
- you’ve reached State Pension age
- you don’t need to pay National Insurance
You’ll need to write to HMRC explaining why you don’t want your employer to see your birth certificate or passport.
National Insurance contributions and Employers Office
HM Revenue and Customs
You’ll be asked to send your birth certificate or passport for verification if HMRC doesn’t have a record of your date of birth. Certified copies are accepted.
You can also show a certificate of age exception (CA4140) if you have one.