Up to State Pension age
If you work - either as an employee or self-employed - and your earnings are over a certain level you pay National Insurance contributions. You pay NICs from age 16 until you reach State Pension age.
If you're employed you pay Class 1 National Insurance contributions based on your level of earnings. If you're self-employed you pay Class 2 contributions at a flat weekly rate and Class 4 contributions annually, based on your level of taxable profits.
After State Pension age
Once you reach State Pension age you don't have to pay Class 1 or Class 2 NICs if you continue working. You only have to pay them on any earnings that were due to be paid to you before you reached State Pension age.
If you continue in employment
If you stay in employment after State Pension age you'll need to provide your employer with proof that you've reached this age. This will allow your employer to stop deducting National Insurance contributions from your earnings. You can do this by showing them any of the following:
- birth certificate
- certificate of age exception
If you continue in self-employment
If you stay self-employed after you reach State Pension age you may still have to pay Class 4 National Insurance contributions. It is an annual charge and you may still have to pay this on any taxable profits for the year in which you reach State Pension age. You won't have to pay this in the following tax year.
Certificate of age exception
The Northern Ireland Pension Centre issues a pack to customers approaching State Pension age giving information on age exemption. If you tell them that you're continuing to work when you claim your State Pension, a certificate of age exception will be sent automatically.
If you don't get a certificate, for example if you put off claiming State Pension, you can either:
- use your birth certificate or passport as proof of age
- ask HM Revenue & Customs to send a certificate to you
A certificate of age exception can be on card or paper. Both are equally acceptable as proof of age.
- Tax if you're employed and getting a pension
- Tax if you're self-employed and getting a pension
- National Insurance: General enquiries (GOV.UK website)
If you think you've overpaid NICs
You might find you've overpaid NICs in certain circumstances. For example:
- you continued working after State Pension age and your employer continued to take Class 1 NICs
- you paid Class 4 NICs on profits from self-employment for a tax year after the one in which you reached State Pension age
- you paid Class 2 NICs as a self-employed person when your earnings were below the Small Earnings Exception (SEE) limit
If you think you may have overpaid follow the link below which gives details on how to claim back overpaid NICs.