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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am over sixty five but am being stopped employers ni as i

Customer Question

I am over sixty five but am being stopped employers ni as i am paid through a management company i do not pay class 2and 4 contributions is this correct
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Being stopped employer's NI is incorrect. If any is due it is a charge on your employer, not you. Here is HMRC's [edited] advice on the subject:

'Once you're over State Pension age you don't have to pay Class 1 or Class 2 National Insurance contributions. If you carry on working as an employee you'll only have to pay Class 1 National Insurance contributions on any earnings that were due to be paid to you before you reached State Pension age.

If you stay in employment after State Pension age you'll need to provide your employer with proof that you've reached this age. This will allow your employer to stop deducting National Insurance contributions from your earnings. You can do this by showing them either of the following:

Birth certificate

Passport'

Are you quite sure of the deductions made not being a hang over from earlier entitlements to emoluments or that your employer is not aware of your exact age?

It is a matter which you should take up with your management company's human resources or wages department along the lines of the second paragraph of HMRC's advice.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.
Customer: replied 3 years ago.

hello keith thanks for the info.i spoke to the agency that pays my wages and they said because i am paid under a tax umbrella whatever that means i am still liable to pay employers ni contributions i am confused

Expert:  bigduckontax replied 3 years ago.
Your agency is talking total piffle. As an umbrella system your wages must be operated through PAYE, but the PAYE system provides for workers over the age of 65 in their deduction systems. If they wont pay ball, then ultimately you may have to demand repayment for incorrectly deducted through the Small Claims Court.
Customer: replied 3 years ago.

hello again keith i have spoken again to the agency that found me the position and the company that pays my wages ,the company that pays my wages are adamant that this n.i. has to be paid but both of them are adamant that i have to pay it. i have read the contracts that i signed and neither mention paying employers part of n.i. contributions.i have tried to find out from h.m r.p but with no avail any suggests.thank brian

Expert:  bigduckontax replied 3 years ago.
Take an action for recovery of sums improperly deducted in the Small Claims Court Brian. Such actions are all but impossible to defend and any solicitor will tell you that almost any defendant who tries is on a hiding to nothing and wasting their money.

Furthermore report the antics of your employer to HMRC in writing. HMRC don't take kindly to employers who don't operate PAYE correctly.

Finally report the whole gang of them, employers and agency to the police for suspected theft, which making you pay the employer's element of NI almost certainly is.