NI payments and retirement

WatlingA5

Hope I'm in the most appropriate section

My wife reaches her "revised" pension age in August. We've been told that she does not have to pay National Insurance from the start of the new tax year in April. If that is true (and it seems to good to be....) can someone point us to where we get whatever form she needs to get it arranged? Or will she get a letter in the next few weeks just telling her?

I'm sure her firm's wages department won't just take her word for it:rotfl:

Thanks in advance

greyfox

If she was self-employed, she would stop paying NI from the start of the tax year in which she reached State Pension age. As she's working for an employer, I'm afraid she has to pay until she actually reaches State Pension age.

Have a look here http://www.hmrc.gov.uk/ni/intro/basics.htm

WatlingA5

Thanks for that. Never mind - never hurts to ask

Jennifer_Jane

Yes, it's the actual age, not the tax year. I sent the age exception certificate to my employer, who kept it until I actually retired. Don't forget to get it back from them, in case your wife wants to do other paid work after retirement.

http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=Kybg-pFAYcQ

When I became 64 in the January, my age-related personal tax allowance came into effect from the start of the new tax year. that same April So, although I was only 64, I benefitted from the over-65 personal tax allowance. This, of course, has now been frozen and won't be increased annually, to eventually align with increased tax allowances for everyone.

And just always check anything HMRC sends you. They decided I was suddenly getting income of over £25,000 (approximately), instead of the £12,000 I had been getting in pension for the previous year. Work things out before you have any dealings with HMRC, they are not that clever that you can rely on their arithmetic.

WatlingA5

Thank you - it's six years since I retired and things have changed. And, as the old saying goes: "Ain't that the truth!"

Katiehound

I agree about checking HMRC calculations.
Last on my tax coding letter they assumed that I was earning £32000 pa (I wish!)- it was buried in the middle of a paragraph!!After that I advised all my friends to check the words on their letters............

As a result of contacting them the PAYE tax coding changed in my favour. Victory, but you do have to be eagle eyed!