National Insurance and Tax After State Pension Age

Introduction

When you reach State Pension age, you stop paying National Insurance contributions even if you continue working. However, you still pay Income Tax on all your earnings and pensions if your total income exceeds your tax-free allowances.

When you stop paying National Insurance

You stop paying National Insurance contributions when you reach State Pension age, regardless of whether you continue working. This applies to all forms of National Insurance:

• Class 1 (if you're an employee)
• Class 2 (if you're self-employed)
• Class 4 (if you're self-employed)

If you're self-employed, the timing works slightly differently. You stop paying Class 4 National Insurance from 6 April (the start of the tax year) after you reach State Pension age.

For example, if you reach State Pension age on 6 September 2026, you'll stop making Class 4 contributions from 6 April 2027. You'll pay your final Class 4 bill by 31 January 2028, together with your Income Tax for that year.

For self-employed people, Class 2 National Insurance contributions will no longer be treated as paid once you reach State Pension age.

What you need to do as an employee

If you're employed and continue working after reaching State Pension age, you must show your employer proof of your age so they can stop deducting National Insurance from your wages. You can use:

• A birth certificate
• A passport
• A certificate of age exception (CA4140) if you have one

If you don't want your employer to see your birth certificate or passport, HMRC can send you a letter confirming you've reached State Pension age and don't need to pay National Insurance. To request this letter, write to:

**National Insurance contributions and Employers Office

HM Revenue and Customs

BX9 1AN**

Explain in your letter why you don't want your employer to see your birth certificate or passport. HMRC may ask you to send your birth certificate or passport for verification if they don't have a record of your date of birth. Certified copies are accepted.

What you need to do if you're self-employed

You'll still need to send a Self Assessment tax return for each year you work, even after you reach State Pension age. National Insurance stops automatically, but you must continue filing tax returns as long as you're self-employed.

You still pay Income Tax

Reaching State Pension age doesn't mean you stop paying Income Tax. You pay Income Tax if your total taxable income is more than your tax-free allowances. Your taxable income includes:

• Earnings from employment or self-employment
• Your State Pension
• Private or workplace pensions
• Rental income
• Other income

The amount of income you can receive before paying tax depends on your Personal Allowance and any other allowances you're entitled to. You must contact HMRC if you think you should be paying tax but aren't.

Age-related tax allowances

Married Couple's Allowance

You can claim Married Couple's Allowance if you're married or in a civil partnership and at least one partner was born before 6 April 1935. This allowance reduces your tax bill, and the amount deducted depends on your income.

Maintenance Payments Relief

You can get an allowance to reduce your tax bill for maintenance payments you make to an ex-spouse or civil partner if:

• You or they were born before 6 April 1935
• You're separated or divorced and making payments under a court order
• The payments are for your ex-partner's maintenance (provided they haven't remarried or formed a new civil partnership) or for your children under 21

For the 2026 to 2027 tax year, Maintenance Payments Relief can reduce your tax bill by the lower of:

• £436 (where you make maintenance payments of £4,360 or more a year)
• 10% of the money you've actually paid (where you make payments of less than £4,360 a year)

You cannot claim a tax reduction for voluntary payments.

Claiming refunds

National Insurance refunds

If you've overpaid National Insurance contributions, you can claim back the amount overpaid. This might happen if your employer continued deducting National Insurance after you reached State Pension age.

Tax refunds

You can claim a tax refund if you've:

• Had too much deducted from your pension
• Overpaid through your job

If you complete a Self Assessment tax return, you can correct mistakes and claim a refund through Self Assessment.

If you're on a low income, you may be able to get tax-free interest on your savings or claim back tax on savings interest you've already paid.

Sources

• National Insurance and tax after State Pension age

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.