National Insurance Help!!!!

Davey83

Hi,

I was hoping someone might be able to help me. My dad started work at the age of 16 and has worked for 43 years. He has not retired yet and is still paying NIC

I have read and heard from different people that once he has 44 years of NIC stamps he no longer has to pay it which has now reduced to 30 apparently, and then i read that as long as he is working he has to pay it up to retirement age.

Can someone please clarify what the rule is and if he is entitled to any exemptions???

DX2

You pay National Insurance contributions if you're an employee or self-employed and you're aged 16 and over, as long as your earnings are more than a certain level. If you're employed you stop paying National Insurance contributions as soon as you reach State Pension age. If you are self-employed, you stop paying Class 2 contributions as soon as you reach State Pension age and Class 4 contributions from the start of the tax year after the one in which you reach State Pension age.
State Pension age is 65 for men born before 6 April 1959 and 60 for women born before 6 April 1950. But it will gradually increase to 65 for women between 2010 and 2020.
Some people also pay voluntary National Insurance contributions. For example, you might choose to pay them if you:

• aren't working and are not claiming state benefits
• haven't paid enough National Insurance contributions in a year to count for the State Pension or other long term state benefits
• live abroad and want to maintain your state benefits entitlement
  http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190048

CIS

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I have read and heard from different people that once he has 44 years of NIC stamps he no longer has to pay it which has now reduced to 30 apparently, and then i read that as long as he is working he has to pay it up to retirement age./QUOTE]

As long as your working and under state pension age then NI is payable regardless of the number of years paid - remember NI isn't just for the state pension.

The 30years rule applies for anyne reaching state pension age after 1apr2010.

Davey83

in that case can he opt to contract out and only pay 8%