Reaching State Pension age can bring big financial changes. Most people stop paying National Insurance (NI), even if they continue working, and may be able to claim back overpaid NI or tax.
Even after pension age, you must submit a Self Assessment tax return for any year you work if you are self employed, but NI changes.
“If you’re self-employed, Class 2 contributions no longer count as paid, and Class 4 contributions stop from 6 April after you reach State Pension age,” explains HM Revenue and Customs (HMRC).
For example, if you reach pension age on 6 September 2025, you stop paying Class 4 from 6 April 2026, with your final bill due by 31 January 2027 alongside Income Tax.
Employees: Show your age to your employer
Employees can stop NI by providing proof of age, such as a birth certificate or passport. “If you prefer, HMRC can issue a letter confirming you’ve reached pension age and don’t need to pay National Insurance,” says HMRC.
Send a letter to HMRC if you don’t want your employer to see your ID.
HMRC may ask for certified copies of documents or a Certificate of Age Exception (CA4140) if needed.
Claim Back Overpaid National Insurance or Tax
National Insurance refunds: You can claim back any NI you’ve overpaid once you reach State Pension age.
Tax refunds: You may be entitled to a refund if you’ve:
Had too much tax deducted from your pension
Overpaid through your job
If you file a Self Assessment, you can also correct mistakes and claim a refund through your tax return.
Tax on savings interest: Low-income savers may be able to get tax-free interest or claim back tax on interest earned from savings.
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HMRC Age-Related Tax Allowances
As well as stopping paying NI, there are some other age-related tax allowances. These are the main ones.
Married Couple’s Allowance
If you’re married or in a civil partnership and at least one partner was born before 6 April 1935, you can claim this allowance to reduce your tax bill. The amount depends on your income.
Maintenance Payments Relief
You may also reduce your tax if you make maintenance payments to an ex-spouse or civil partner, provided:
You or your ex were born before 6 April 1935
Payments are made under a court order
Payments are for an ex-partner (who hasn’t remarried or formed a civil partnership) or for children under 21
How much you can get (2025–26)
£436 if you make £4,360 or more in maintenance payments per year
10% of the money you actually paid if payments are less than £4,360
Note: Voluntary payments without a court order cannot reduce your tax.