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Can I stop paying National Insurance after 35 years?

If you are nearing the end of your working life and have paid National Insurance contributions for 35 years or more, you may be wondering whether you can stop paying National Insurance. The answer to this question depends on a number of factors, including your age, your employment status, and the type of National Insurance contributions you are making.

Can I stop paying National Insurance after 35 years?

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Can I stop paying National Insurance after 35 years?


Firstly, it's important to understand that National Insurance contributions are used to fund a variety of state benefits and services, including the state pension, maternity and paternity leave, and the National Health Service (NHS). If you stop paying National Insurance contributions, you may lose entitlement to these benefits and services.


If you are employed, you will usually continue to pay National Insurance contributions until you reach State Pension age, which is currently 66 years old for both men and women. At this point, you will no longer need to pay National Insurance contributions, as you will be entitled to receive the State Pension.


However, if you are self-employed, the rules are slightly different. Self-employed individuals are required to pay two types of National Insurance contributions: Class 2 and Class 4. Class 2 contributions are a flat rate contribution that are payable if your self-employed profits are above a certain threshold. Class 4 contributions are based on your self-employed profits and are payable in addition to Class 2 contributions.


If you are self-employed and have paid Class 2 contributions for 35 years or more, you may be eligible for the Small Profits Threshold (SPT). This means that you will not need to pay Class 2 contributions in future years, unless your self-employed profits increase above the SPT threshold. The SPT is currently set at £6,515 for the 2021-22 tax year.


However, it's important to note that even if you are no longer required to pay Class 2 contributions, you may still need to pay Class 4 contributions. Class 4 contributions are based on your self-employed profits and are payable until you reach State Pension age.


It's also worth noting that if you are employed and self-employed at the same time, you may need to continue paying National Insurance contributions on your employed income, even if you are no longer required to pay Class 2 contributions on your self-employed income.


If you are not currently employed or self-employed, you may still need to pay National Insurance contributions if you receive income from other sources, such as rental income or investment income. The rules for National Insurance contributions on non-employment income are complex, and it's worth seeking advice from a financial advisor or tax specialist if you are unsure about your obligations.


In conclusion, whether or not you can stop paying National Insurance contributions after 35 years depends on a number of factors, including your age, your employment status, and the type of National Insurance contributions you are making.


If you are employed, you will usually continue to pay National Insurance contributions until you reach State Pension age. If you are self-employed and have paid Class 2 contributions for 35 years or more, you may be eligible for the Small Profits Threshold and may not need to pay Class 2 contributions in future years.


However, you may still need to pay Class 4 contributions. If you are not currently employed or self-employed, you may still need to pay National Insurance contributions if you receive income from other sources. It's important to seek advice from a financial advisor or tax specialist if you are unsure about your National Insurance obligations.




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