National Insurance: What I Am Paying For?

National Insurance (NI) in the United Kingdom is a system of contributions paid by workers and employers to qualify for certain benefits. The national insurance scheme is administered by HM Revenue and Customs (HMRC).

National insurance numbers

A national insurance number (NINO) is a number unique to you which is used to keep track of your national insurance contributions and the benefits which you are paid. The number is made up of two letters, six numbers and one letter, for example, AB 123456 C.

National Insurance Contributions classes and rates

The class you pay depends on your employment status and how much you earn, and whether you have any gaps in your National Insurance record.

What National Insurance is for

National Insurance contributions count towards the benefits and pensions in the table. Class 4 contributions paid by self-employed people don’t usually count towards state benefits.

NI Class

Who pays

How to pay

NI rate (2019-20 tax year)

Class 1

Employees pays than earning £166 to £962 a week (£719 to £4,167 a month)

Through payroll

12%

Cl

Employer pays than employees earning £166 to £962 a week (£719 to £4,167 a month)

Through payroll

13.8%

Class 2

Self-employed people earning more than £6,365 a year

Through Self Assessment

£3.00 a week

Class 3

Voluntary contributions

Write HMRC

£15.00 a week

Class 4

Self-employed people earning profit £8,632 to £50,000 a year

Through Self Assessment

9%

 

Benefits

Class 1: employees

Class 2: self-employed

Class 3: voluntary contribution

Basic State Pension

Yes

Yes

Yes

Additional State Pension

Yes

No

No

New State Pension

Yes

Yes

Yes

Contribution-based Jobseeker's Allowance

Yes

No

No

Contribution-based Employment and Support Allowance

Yes

Yes

No

Maternity Allowance

Yes

Yes

No

Bereavement Support Payment

Yes

Yes

No

 

Tax national insurance employer self employed

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