Paying NI after early retirement

Finance_Director

Hi all,

I have 40 year full class 1 NI contributions. I will soon be drawing a company Pension :beer: and have a few years on this till I reach state pension age.

How do I go about getting my NI contributions on my company pension stopped ?

Any body got experience of this ?

Thanks.

ceeforcat

There are no NI contributions on a company pension. Generally the paying office of the pension will differ from that of the employment which give rise to the pension and they will know this.

Finance_Director

Thanks Ceeforcat,

Do I have to instruct the HMRC NI contributions org, that I wish to stop paying NI, as my company pension administrators seem to think doing this is not their job !

ceeforcat

Finance_Director wrote: »

Thanks Ceeforcat,

Do I have to instruct the HMRC NI contributions org, that I wish to stop paying NI, as my company pension administrators seem to think doing this is not their job !

I am not sure what you mean as you won't be paying NI or have any income liableto NI - reference my previous post.

Finance_Director

Thanks,

I will go back to the Pension Administration pat office and give them the hard word.

xylophone

or have any income liableto NI -

Is he giving up work as well as drawing the pension?
Although the pension should be paid without NI deducted, he will still pay NI on earnings above the LEL until state pension age?

Finance_Director

Xylophone,

Yes, drawing company pension in early retirement.

What is the LEL ? Am I still then liable to NI above a specific level of company pension ?

I expect to pay NI on any job income while receiving the company pension, but only before state retirement age.

molerat

Lower Earnings Limit (but you do not pay NI above the LEL, it is credited above that amount, £107pw. NI is paid above the Primary Threshold, £146pw)
http://www.hmrc.gov.uk/rates/nic.htm

You do not pay NI on pension income.

xylophone

Sorry, meant Primary Threshold (see molerat's post 8)- the point is that while there is no NI on pensions, if you continue to draw a salary and earn above the PT, you continue to pay NI until you reach state pension age, regardless of whether you have already paid enough contributions for a full state pension.

After state pension age, even if you continue to earn a salary, you no longer pay NI. http://www.hmrc.gov.uk/ni/intro/basics.htm

If you are ever in this position, you might need to advise your employer see http://www.hmrc.gov.uk/pensioners/paying-making.htm

Finance_Director

Excellent,

Thank you all very much for sharing your obvious extensive knowledge on this subject.

It will now allow me to challenge with some confidence, my company Pensions Mangement pay office.

CLAPTON

Finance_Director wrote: »

Excellent,

Thank you all very much for sharing your obvious extensive knowledge on this subject.

It will now allow me to challenge with some confidence, my company Pensions Mangement pay office.

there is nothing to challenge

PENSION INCOME IS NOT SUBJECTED TO NI
It will NOT be deducted from your pension.

If you ALSO have earned income then you may pay NI as already explained.