National Insurance and tax after State Pension age

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1. Overview

You do not pay National Insurance after you reach State Pension age - unless you’re self-employed and pay Class 4 contributions. You stop paying Class 4 contributions at the end of the tax year in which you reach State Pension age.

You only pay Income Tax if your taxable income - including your private pension and State Pension - is more than your tax-free allowances (the amount of income you’re allowed before you pay tax).

You must contact HM Revenue and Customs (HMRC) if you think you should be paying tax.

2. Stop paying National Insurance

You pay National Insurance contributions to qualify for certain benefits including the State Pension.

If you’re employed, you pay Class 1 National Insurance contributions as a percentage of your earnings up to State Pension age.

If you’re self-employed, you pay Class 2 contributions at a flat weekly rate and Class 4 contributions annually as a percentage of your taxable profits.

What happens at State Pension age

You stop paying Class 1 and Class 2 contributions when you reach State Pension age - even if you’re still working.

You’ll continue paying Class 4 contributions until the end of the tax year in which you reach State Pension age.

For example, you reach State Pension age on 6 September 2024. You’ll stop making Class 4 contributions on 5 April 2025 and pay your final Class 4 bill by 31 January 2026, together with your Income Tax.

If you’re self employed, you still need to send a Self Assessment tax return for each year you work - even after 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 do not 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 do not need to pay National Insurance

You’ll need to write to HMRC explaining why you do not want your employer to see your birth certificate or passport.

National Insurance contributions and Employers Office
HM Revenue and Customs
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You’ll be asked to send your birth certificate or passport for verification if HMRC does not 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.

3. Age-related tax allowances

Married Couple’s Allowance

You can claim the Married Couple’s Allowance if you’re married or in a civil partnership and at least one partner was born before 6 April 1935. It gets taken off your tax bill - the amount that’s deducted depends on your income.

Maintenance Payments Relief

You can get an allowance to reduce your tax bill for maintenance payments you make to an ex-spouse or civil partner if:

  • you or they were born before 6 April 1935
  • you’re separated or divorced and you’re making payments under a court order
  • the payments are for the maintenance of your ex-partner (as long as they have not re-married or formed a new civil partnership) or your children are under 21

How much you can get

For the 2024 to 2025 tax year, Maintenance Payments Relief can reduce your tax bill by the lower of the following:

  • £428 - where you make maintenance payments of £4,280 or more a year
  • 10% of the money you’ve actually paid - where you make payments of less than £4,280 a year

You cannot claim a tax reduction for any voluntary payments you make.

4. Claim back tax or National Insurance

National Insurance refunds

You can claim back any overpaid National Insurance.

Tax refunds

You can claim a tax refund if you’ve:

  • had too much deducted from your pension
  • overpaid through your job

If you complete a tax return, you can also correct mistakes and claim a refund via Self Assessment.

Claiming back tax on savings interest

If you’re on a low income, you may be able to get tax-free interest or get some tax back from interest on your savings.