National Insurance Query

suej

Hi

One of our employees had their 60th Birthday in July but didn't supply their NI age exemption card until last week. Do I have to refund the employee contributions that she has made from July to October or does she have to reclaim them from HMRC?

Thanks
Sue

truecockney

You are obliged to refund the NI for the current tax year and adjust your next P11 return.

http://www.hmrc.gov.uk/guidance/cwg2.pdf (see note 90)

Did you know that as long as you had proof of their retirement age, you could have also used:

- Passport
- Birth Certificate

anniem

I've just had a member of staff come in with hers and it didn't take effect until November, even though she was 60 in July.

She told me that because the pension age is increasing and she doesn't qualify for her pension until November her exemption didn't kick in until November either.

anniem

This may also help.

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_4017919

I just used the state pension calculator and if you type in their dob; I used 15 July 1950 it gave a pension date of 6 November 2010. This is when the NIC rate changes.

suej

Thank you for your help, had completely forgotten about the changes in retirement age so didn't bother to look at the Valid from date on the card!!!

Regards
Sue