When I'm 64, will I still... pay NI?
Every UK taxpayer is required to pay national insurance contributions (NICs) only until he or she reaches state pension age (SPA).
The cut-off date for class 4 NICs (paid by the self-employed on profits) is the end of the tax year in which the taxpayer attains state pension age, as class 4 is assessed on an annual basis. Class 2 and class 1 NICs are assessed on a weekly or pay-period basis, so the stop-date for those classes is the pay period or week in which you reach your SPA.
But what is your personal SPA? This is no longer the same age for all men or all women. The SPA for women is gradually being moved up from 60 to 65. Women who are reaching 60 this year have a SPA of 64 or more.
Once the SPA is aligned for men and women at 65, it will move to 66, and then onwards and upwards. There is a draft law passing through Parliament right now which will increase the SPA for men and women to 67.
If you are female, self-employed and aged over 60, check your SPA on the online state pension age calculator before signing your tax return. Don't assume that the tax return software has used the right SPA date for you when calculating the class 4 NICs you are due to pay for the tax year.
