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Post Info TOPIC: NI category


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I have a client with an employee who is 62 and is insisting she doesn't have to pay NI on her wages but from what I can tell from the HMRC website she should still be paying it. She earned £700 last month.

Is this right?

Sam



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Sam



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It depends on if she is in receipt of her state pension or not. If she is then she does not have a NI liability no matter how much she earns.

You can check if she is by her date of birth. www.gov.uk/government/uploads/system/uploads/attachment_data/file/310231/spa-timetable.pdf

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Frauke
BKN Book-keeper of the year 2011



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Hi Sam
You need 30 qualifying years of up to date payments (or credits) into the NI system to get the full state pension (assuming the state isnt bust by then or they change the rules as you get older etc). If you have a shortfall you can ignore it and not get the full pension or make up the payments. Unfortunately once youve put in the 30 years worth it doesnt mean you dont have to pay! (I wish!) I wonder if thats what she is thinking. She would need to earn less than the threshold to not pay it. Might be worth having another word and /or directing them to the NI helpline.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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Once you reach state pension age you don't oay NI-employers still pay
The link below may help

www.gov.uk/tax-national-insurance-after-state-pension-age/stopping-paying-national-insurance

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Sharon



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Good point, so it's just down to if her birthday is right in the system

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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According to the link she reaches state pension age on 6 November 2018.

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Sam



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Hi Sam,

She can't be 62 then. 6 November 2018 - is for women born 6/11/53 to 5/12/53. These women were 61 years old 4 months ago.

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Frauke
BKN Book-keeper of the year 2011



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That's true!

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Sam

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