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
Categories: Pension

by Admin

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