National Insurance after age 65 for men

John_Gray

Apologies if this is the wrong board!

After the age of 65 for men, when the state pension is available, for those still employed I understand that National Insurance is no longer payable.

However, I am not clear how this operates for the month in which the chap becomes 65:

• is the entire month free from NI?
• is it pro-rated in some way, e.g. if his birthday is the 10th then NI is chargeable at 10/31 of the monthly rate?
• is the entire month charged to NI?

Thanks!

molerat

A nice woolly statement from http://www.hmrc.gov.uk/pensioners/paying-making.htm#2

What happens at State Pension age?

Once you're over State Pension age you don't have to pay Class 1 or Class 2 National Insurance contributions. If you carry on working you'll only have to pay them on any earnings that were due to be paid to you before you reached State Pension age.

John_Gray

Thank you, Mr MoleRat! But undoubtedly payroll programs like Sage would have to implement this woolliness in their system, so there must be a definitive answer to my question!

RichandJ

Para 86 on p71 of the link below appears to say it should be pro rated if you attain 65 before the actual payment. Have you asked your payroll dept ? They'd be most likely to know the practicalities (you'd hope).

http://www.hmrc.gov.uk/guidance/cwg2.pdf

LittleVoice

John_Gray wrote: »

Thank you, Mr MoleRat! But undoubtedly payroll programs like Sage would have to implement this woolliness in their system, so there must be a definitive answer to my question!

You do not have to pay National
Insurance contributions if you are over State Pension age,
but your employer will need confirmation of this.

Please phone
0845 302 1479 or
textphone
0845 915 3296

and ask for the form CA4140 Certificate of Age Exception. The form tells your employer not to take National Insurance contributions from your earnings

I believe the employer ceases to apply NI deductions from the first payment (weekly or monthly) after the 65th birthday. It is not apportioned according to the number of days in the pay period before and after 65.

You could phone that 0845 number and ask.

By the way, it is not necessary to provide a CA4140 if the employer already knows the date of birth because they have a copy of the employee's birth certificate.

John_Gray

Hmmm. Maybe both the last two posts mean the same thing?

The reference given by RichardJ says, again with HMRC's natural woolliness:
"The certificate of age exemption gives you the authority to stop paying employee's contributions.
The certificate shows a 'valid from' date and the employee will not be liable to pay any employee's contributions on any payment of earnings made on or after that date."

So if the employee is paid monthly, then no NI is payable by the employee during the month in which his/her birthday falls? Couldn't they have worded it like that?!

Oh, BTW, the "payroll dept" is a part-time financial person who works at a small charity, and this is the first time that the matter has arisen!

molerat

The second one seems a bit less woolly
The first states "due to be paid to you before" which means ?
The second states " payment of earnings made after" which seems to mean any payday after SRA. Luckily I retired before SRA so no problems for me with this one