Online News - Business News - Date: June 2010
State Pension Age and National Insurance Contributions
HMRC are reminding employers to take care when deciding whether or not their employees need to pay national insurance contributions (NICs). Employees do not need to pay NICs on reaching State Pension age (SPa). Some payroll software warns employers as women approach age 60 to check their national insurance status as previously women would have been exempt from the employee contribution from age 60. This warning may now be being issued too early.
As a result of changes brought in by the 1995 Pensions Act, from 6 April 2010 the age at which women reach SPa will gradually rise to become the same as it is for men of 65. The change is being phased in between 6 April 2010 and 6 April 2020 on a sliding scale, and will affect women born between 6 April 1950 and 5 April 1955. All women born on or after 6 April 1955 will reach SPa at age 65.
For more information see the latest Employer Bulletin and for a look up table of dates see appendix C following the link below.
Internet links: Employer Bulletin DWP report
For further information, please contact us on 03332 401 333 or email enquiries@kirknewsholme.co.uk
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