NIC and tax after reaching State Pension age

by Aitch, posted in Pension

If you continue working after reaching State Pension age, your National Insurance position changes, but your Income Tax obligations largely remain the same.

Once you reach State Pension age, you stop paying employee National Insurance contributions (Class 1) on your earnings. However, your employer must continue to pay employer (secondary) Class 1 National Insurance contributions.

If you are employed, you should provide your employer with proof of your age (such as a passport or birth certificate) so that National Insurance deductions can be stopped. If you prefer not to provide this, you can request confirmation from HMRC (known as an age exception certificate) and show this instead.

If you are self-employed, Class 2 National Insurance contributions are no longer due, and you stop paying Class 4 contributions from the start of the tax year following the one in which you reach State Pension age. For example, if you reach State Pension age during 2026–27, your Class 4 NIC contributions will continue until 5 April 2027 and then stop.

Although National Insurance may no longer apply, Income Tax is still payable if your total taxable income exceeds your personal allowance.

You must continue to meet your reporting obligations, including filing a self-assessment tax return where required. If you have overpaid tax or National Insurance, you can claim a refund from HMRC.

Source:HM Revenue & Customs | 27-04-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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