State pension age: Fears National Insurance exemption under threat to cover Covid costs | Personal Finance | Finance

Self-employed people stop paying Class 2 National Insurance when they reach state pension age, and Class 4 National Insurance from April 6 – with this being the start of the tax year – after reaching state pension age.

The coronavirus pandemic, and the unprecedented public spending in response to it, has prompted many to speculate about what Chancellor of the Exchequer Rishi Sunak could announce at the Spring Budget on March 3.

The Chancellor has agreed to stick with a Conservative Manifesto Commitment, referred to as the tax triple lock, which would stop a rise in Income Tax, National Insurance and Value Added Tax (VAT), the Financial Times reported yesterday.

However with huge spending having already incurred to support jobs and businesses during the ongoing Covid crisis, and a stated objective to return the nation’s finances to a sustainable footing in the longer term, it may be the Chancellor looks elsewhere to cut the deficit, raising the prospect of increases in other taxes or cuts in allowances and tax reliefs.

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