In this week’s Q&A, Vanessa Matthews, adviser at Croner-i VIP Tax Team, explains employer and employee national insurance liability when reaching state pension age
Q. My employee has reached the state pension age of 65 so is it correct that we do not have to pay any employee Class 1 National Insurance contributions (NIC) now?
A. As set out in regulations 28 and 29 SI 2001/1004) and s6(3) SSCBA 1992, primary/employee’s Class 1 National Insurance contributions (NICs) are not payable by anyone over state pension age. However, the employer should continue to pay secondary/employer’s Class 1 NICs.
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