National Insurance is a tax paid by workers in the UK. It’s used to help fund the State Pension, certain benefits, and the NHS. Knowing when you stop paying National Insurance is important for managing your finances and planning for retirement. So, when do you stop paying National Insurance?
When You Reach State Pension Age
If you’re a man born before 6 April 1951 or a woman born before 6 April 1953, you stop paying National Insurance when you reach State Pension age. This is 65 for most people, though it can be different for some. If you were born on or after 6 April 1951, you will stop paying National Insurance when you reach State Pension age, which is currently 67.
When You Reach Your State Pension Credit Age
If you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953, you stop paying National Insurance when you reach your State Pension Credit age. This is different from State Pension age, and it’s currently 63 for most people. It can be different for some.
When You Reach State Pension Age, But You Have Deferred Your State Pension
If you have deferred your State Pension, you can stop paying National Insurance earlier than your State Pension age. However, you must have deferred your State Pension before you reach State Pension age. To find out when you can stop paying National Insurance if you have deferred your State Pension, contact the Department for Work and Pensions.
When You Reach The End Of Your Tax Year
You can also stop paying National Insurance at the end of your tax year. This is usually 5 April. However, this is only if you have reached State Pension age or State Pension Credit age, and you have no earnings or profits from self-employment. If you do have earnings or profits from self-employment, you must continue paying National Insurance.
When You Reach Pensionable Age and Have Stopped Working
If you have reached State Pension age or State Pension Credit age and have stopped working, you can stop paying National Insurance. However, you must have no earnings or profits from self-employment. If you do have earnings or profits from self-employment, you must continue paying National Insurance. Similarly, if you’re self-employed but have reached State Pension age or State Pension Credit age, you must continue paying National Insurance until the end of your tax year.
When You Reach The Upper Earnings Limit
You can also stop paying National Insurance when you reach the Upper Earnings Limit (UEL). This is the maximum amount you can earn before you stop paying National Insurance. The current Upper Earnings Limit is £9,500. However, you must meet all the other conditions mentioned above.
When You Reach Age 75
If you have reached age 75 and you have no earnings or profits from self-employment, you can stop paying National Insurance. However, you must meet all the other conditions mentioned above. If you do have earnings or profits from self-employment, you must continue paying National Insurance until the end of your tax year.
When You Reach Retirement Age
If you have reached retirement age and you have no earnings or profits from self-employment, you can stop paying National Insurance. Retirement age is not the same as State Pension age or State Pension Credit age, and it varies depending on which type of pension you have. If you do have earnings or profits from self-employment, you must continue paying National Insurance until the end of your tax year.
Conclusion
When you stop paying National Insurance depends on several factors, including your age and whether or not you have earnings or profits from self-employment. Generally, you stop paying National Insurance when you reach State Pension age or State Pension Credit age. However, you can also stop paying National Insurance when you reach the Upper Earnings Limit, when you reach age 75, or when you reach retirement age. If you have any questions about when you stop paying National Insurance, contact the Department for Work and Pensions.