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NIC's & moving Pensionable age

NIC's & moving Pensionable age nearly caught out

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I was considering POA's for someone born in Jan 1954 and the initial thought was "he was 65 in Jan 2019 so C2NIC's stop then and he's excepted C4NIC for 19-20". Then I had a think & double checked his state pension age, and it came out as May 2019, so on the face of it he:

  • pays C2NIC's until May 19 [SSCBA 11 (7)(b)]; and
  • was not of pensionable age at 6/4/19 so remains liable to C4NIC's for the whole of 19-20 [SSCBA 17 & SI 2001/1004 91].

Time to redo the calculations I think, or have I missed something?  I don't think I have but just checking the hive mind.

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RLI
By lionofludesch
01st Jan 2020 16:29

Yep. You're right. I fall into the same category myself, though, in my case, my new improved retirement date still falls in 2019/20.

You're going to have to be careful with 65 year olds in 2018/19 and 2019/20. After that, 66 will be your mark until they begin stepping up the age to 67.

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By memyself-eye
01st Jan 2020 16:55

My state pension payments began November 2019 but no class 2's were required after April - I had the full 35 years though, by then.
His HMRC NI account should tell him where he stands.
Do class four NI's also cease in the tax year after pensionable age?

If so, almost makes working worth it.....

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Replying to memyself-eye:
RLI
By lionofludesch
01st Jan 2020 17:06

My understanding is that Class 2 contributions are required up to the retirement date, Class 4 for the full year of retirement.

Folk on here continually caution about the dangers of the dreaded Overlap Relief but I'm looking forward to shunting a substantial amount of profits into 2020/21 and avoiding 9% Class 4 on them.

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Replying to memyself-eye:
By Paul D Utherone
01st Jan 2020 17:18

Class 2 is payable to the week you reach pensionable age - http://www.legislation.gov.uk/ukpga/1992/4/section/11/enacted

Class 4 ceases for the tax year after you reach pensionable age - http://www.legislation.gov.uk/uksi/2001/1004/regulation/91/made

both as originally enacted/made but the gist remains the same with later changes

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Replying to Paul D Utherone:
RLI
By lionofludesch
01st Jan 2020 17:39

Thought so.

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Replying to memyself-eye:
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By Not Anonymous
02nd Jan 2020 08:25

memyself-eye wrote:

My state pension payments began November 2019 but no class 2's were required after April - I had the full 35 years though, by then.
His HMRC NI account should tell him where he stands.
Do class four NI's also cease in the tax year after pensionable age?

If so, almost makes working worth it.....

35 years are unlikely to be relevant for most people under the transitional rules.

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