Womans National Inurance on Retirement

Tominthemiddle

My partner reached retirement age in December 2011, But her Retirement date is September 2013, which is 1 year, 8 months, 26 days after her 60th Birthday.
We read somewhere recently that she would only have to pay National Insurance for 1 year 7 months, which would be mid July.
Can anyone verify that this is correct, We have visited Gov/uk, But it has no information apart from her actual retirement date.

nomunnofun

You pay Class 1 National Insurance on earnings received on any payday before state pension age. A certificate of age exception must be obtained and given to the employer in order that contributions cease at that time.
http://www.hmrc.gov.uk/pensioners/paying-making.htm#2

anamenottaken

nomunnofun wrote: »

You pay Class 1 National Insurance on earnings received on any payday before state pension age. A certificate of age exception must be obtained and given to the employer in order that contributions cease at that time.
http://www.hmrc.gov.uk/pensioners/paying-making.htm#2

This certificate does not have to be obtained.
If, from official documents (like birth certificate, passport or driving licence) the employer is aware of the date of birth of their employee, they don't need a certificate of age exemption.

Given all the anti-illegal working checking which has gone on over the last twenty or so years, I find it difficult to think that there are many employeers who can't confirm the birth date of their employee already. If they can't, there is still no need for the age examption certificate if the employee provides other evidence. However, a reminder to payroll that they are no longer required to deduct NI is always a good idea.

nomunnofun

anamenottaken wrote: »

This certificate does not have to be obtained.
If, from official documents (like birth certificate, passport or driving licence) the employer is aware of the date of birth of their employee, they don't need a certificate of age exemption.

Given all the anti-illegal working checking which has gone on over the last twenty or so years, I find it difficult to think that there are many employeers who can't confirm the birth date of their employee already. If they can't, there is still no need for the age examption certificate if the employee provides other evidence. However, a reminder to payroll that they are no longer required to deduct NI is always a good idea.

I take your first point absolutely.

However, on the second, it is not now reasonable for an employer to know the state pension age of each employee, given the transitional nightmare that we are now in.

While they must have the employee's date of birth they could not know, for example, that a lady who turns 60 tomorrow will stop paying Class 1 NIC on the first payday after 6th July 2017.

nomunnofun

Just by way of example, I have a client with a weekly payroll who came to me last month with quite a problem. An employee turned 60 last September 2012 and, since that date each weekly payroll has had no Class 1 NIC deducted from wages.

As it stands we have:

1) Incorrect form P35 submitted in April.
2) Incorrect P60 for the lady in question.
3) Incorrect EAS submission under RTI. (maternity claim)
4) Twelve incorrect full payment submissions this tax year under RTI.
5) Three incorrect employer payment summaries submitted under RTI.
6) Five incorrect payments to HMRC

There are ninety employees. The employer now owes an amount to HMRC spread over two tax years.

The employee will owe the employer an amount as a result of forty wage slips having no Class 1 NIC deducted.

I have not yet figured out how to approach this, especially from the RTI perspective but I will get there!

It transpired that the employee TOLD the employer that she had turned 60 in September 2012 and the wages clerk stopped deducting NIC. I wonder how many other employers have acted similarly?

anamenottaken

nomunnofun wrote: »

Just by way of example, I have a client with a weekly payroll who came to me last month with quite a problem. An employee turned 60 last September 2012 and, since that date each weekly payroll has had no Class 1 NIC deducted from wages.

As it stands we have:

1) Incorrect form P35 submitted in April.
2) Incorrect P60 for the lady in question.
3) Incorrect EAS submission under RTI. (maternity claim)
4) Twelve incorrect full payment submissions this tax year under RTI.
5) Three incorrect employer payment summaries submitted under RTI.
6) Five incorrect payments to HMRC

There are ninety employees. The employer now owes an amount to HMRC spread over two tax years.

The employee will owe the employer an amount as a result of forty wage slips having no Class 1 NIC deducted.

I have not yet figured out how to approach this, especially from the RTI perspective but I will get there!

It transpired that the employee TOLD the employer that she had turned 60 in September 2012 and the wages clerk stopped deducting NIC. I wonder how many other employers have acted similarly?

Sorry to hear that your client was not competent and able to spend 2 minutes (at the most - I've just done that from a standing start) to establish the correct date for reaching pension age. Hardly a "transitional nightmare".

nomunnofun

anamenottaken wrote: »

Sorry to hear that your client was not competent and able to spend 2 minutes (at the most - I've just done that from a standing start) to establish the correct date for reaching pension age. Hardly a "transitional nightmare".

You clearly are fully competent. My client is not. I would maintain that it is not the employer's job to determine pension age - it is the employee's responsibility to inform them. However, as I suspect that your response is unlikely to be completely pleasant, I will accept that you know best!

Torry_Quine

Tominthemiddle wrote: »

My partner reached retirement age in December 2011, But her Retirement date is September 2013, which is 1 year, 8 months, 26 days after her 60th Birthday.
We read somewhere recently that she would only have to pay National Insurance for 1 year 7 months, which would be mid July.
Can anyone verify that this is correct, We have visited Gov/uk, But it has no information apart from her actual retirement date.

She didn't reach retirement age in December 2011 though but will reach it in September this year. Until then she has to pay NI if she earns enough.