Call us 0800 0523 555

Contact Us

*COVID-19 update: Many of our shops and offices are now open for face to face meetings with strict social distancing measures in place. We also offer telephone and video consultations for all new clients in order to discuss your needs. Find the latest COVID-19 information available for your business.

Can I Stop Paying National Insurance Contributions

I am self-employed and pay National Insurance Contributions monthly. Can I stop paying National Insurance once I have enough qualifying years to get a full basic state pension?

There are two classes of National Insurance that are applicable to self-employed individuals.

Class 2 National Insurance Contributions must be paid until the earlier of the date on which you cease to trade, or the day on which you reach the qualifying age for state pension.  For those individuals who have a low income, it is possible to apply for a small earnings exemption from Class 2 - the current exemption limit is £5,075 net earnings per year.

Class 4 National Insurance Contributions are computed according to the net profit each year on your self assessment tax return.  The final liability for Class 4 Contributions falls in the tax year you cease to trade, or the year you reach the qualifying age for state pension.

There have been changes to the rules regarding the number of qualifying years required to receive the full basic state pension. For the period to 5 April 2010 men will normally need to achieve 44 qualifying years by the age of 65 and women will normally need to achieve 39 qualifying years by the age of 60

The Pensions Act 2007 has reduced the number of qualifying years required to receive the basic state pension. Men and women reaching state pension age on or after 6 April 2010 will need to have achieved 30 qualifying years in order to receive that basic pension.

Call us today to make an appointment with your local office

Consultations available by telephone or video

0800 0523 555

Contact Us