Any increase in contribution rates and earnings levels takes effect at the start of the tax year in April; current rates and earnings levels are always given in the latest edition of leaflet N1208.
Contributions for men over 65 and women over 60 There is no liability for employee's contributions for:
men over 70 and women over 65; or
men between 65 and 70, and women between 60 and 65, who have retired or are treated as retired; or
men between 65 and 70, and women between 60 and 65, who did not satisfy the contribution conditions for retirement pension on their own contributions at retirement age.
From April 1978 people over retirement age will not have to pay any contributions whether or not they have retired.
The employer remains liable for his share of the contribution. This applies even where the employee pays reduced rate contributions or where the employee has no liability.
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Class 3 contributions cannot be paid for the tax year in which a man reaches 65, 60 in the case of a woman, or for any subsequent years.
Class 4 contributions are not payable by men who are over 70 or women over 65 at the beginning of the tax year. From 6 April 1978 Class 4 contribu- tions will not be payable by men who are 65 or women who are 60 at the beginning of the tax year.
Crediting of contributions
Generally a contribution may be credited for each complete week (ending on Saturday) of proved incapacity for work or unemployment, or for which there is entitlement to maternity allowance, and, subject to certain con- ditions, for periods of approved courses of training after age 18. Married women who have chosen reduced liability are not entitled to any of these credited contributions.
Contributions may be credited for retirement pension and widow's benefit purposes to young people up to the end of the tax year in which they reach 18. There are special rules to help some people, eg new contributors and women who become widowed or divorced, to qualify for sickness, unemploy- ment or maternity benefit.
National insurance numbers
National insurance numbers are allocated to all contributors to ensure that contributions are correctly recorded to their accounts. The number consists of two prefix letters, six figures and a suffix letter A, B, C or D. It is important that the national insurance number is entered accurately on all documents dealing with contributions.
Generally, young people will have a national insurance number allocated to them before they reach school-leaving age and will be given a national insurance number card. Anyone who has not been given a number must, when he first becomes liable for contributions, or wishes to pay contribu- tions voluntarily even though he is not liable, apply to the local social security office (Čareers office if under age 18). An employee starting a job must give his employer his correct national insurance number otherwise benefit could be lost.
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