National Insurance UK How-To

GOV.
UK
National Insurance
Notes
1. Overview
You pay National Insurance contributions to qualify for certain benefits including the State
Pension.
You pay National Insurance if youre:
16 or over
an employee earning above 153 a week
self employed and making a profit over 5,885 a year (unless you get an exception)
The exact amount you pay depends on:
how much you earn

whether youre employed or self-employed
You may also want to pay voluntary contributions to make up for gaps in your National
Insurance record. For example, you can have a gap because you werent working and didnt get
any state benefits.
When you stop paying

If youre employed, you stop paying Class 1 National Insurance when you reach the State
Pension age.
If youre self-employed you stop paying:
Class 2 National Insurance when you reach State Pension age (or up to 4 months after
this to pay off any contributions you owe)
Class 4 National Insurance from 6 April (start of the tax year) after you reach State
Pension age
2. Your National Insurance number

Your National Insurance number makes sure your National Insurance contributions and tax are
only recorded against your name.
Its made up of letters and numbers and never changes.

You can apply to get a National Insurance number if you dont have one.
Who uses your National Insurance number

These organisations need to know what your number is:
HM Revenue and Customs (HMRC)

your employer
the Department for Work and Pensions (which includes Jobcentre Plus and the Pension,
Disability and Carers Service), if you claim state benefits, or in Northern Ireland the
Department for Social Development
your local council, if you claim Housing Benefit, or the Northern Ireland Housing
Executive
the Student Loan Company, if you apply for a student loan
your Individual Savings Account (ISA) provider, if you open an ISA
To prevent identity fraud, keep your National Insurance number safe and dont give it to anyone
who doesnt need it.
3. National Insurance contributions - how

much you pay
Youre employed
You pay Class 1 National Insurance contributions. The rates for most people are:
12% on your weekly earnings between 153 and 805

2% on any weekly earnings over 805
Youll pay less if youre in a contracted out workplace pension or youre a married woman or
widow with a valid certificate of election.
You pay National Insurance with your tax. Your employer will take it from your wages before
you get paid. Your payslip will show your contributions.
If youre a director of a limited company, you may also be your own employee and pay National
Insurance Class 1 through your PAYE payroll.
Youre self-employed
Youre responsible for paying your own National Insurance. How much you pay depends on
your profits.
Rates for the 2014 to 2015 tax year
Annual profits Class 2 Class 4

Up to 5,885 0 but only if you get an 0
exception
5,885 - 7,956 2.75 a week 0
7,956 -
2.75 a week 9% of profits from 7,956 up to 41,865
41,865
More than 9% of profits from 7,956 up to 41,865 and 2%
2.75 a week
41,865 over that amount
Rates for the 2013 to 2014 tax year

0 but only if you get an
Up to 5,725 0
exception
5,725 - 7,755 2.70 a week 0
7,755 -
2.70 a week 9% of profits from 7,755 up to 41,450
41,450
More than 9% of profits from 7,755 up to 41,450 and 2%
2.70 a week
41,450 over that amount
You must arrange payments for Class 2 yourself.
Class 4 contributions will be paid with your Income Tax. You can set up your payments when
you register for Self Assessment or change how you pay.
Youre employed and self-employed

You might be an employee but also do self-employed work. In this case your employer will take
care of your Class 1 payments and you have to pay Class 2 and 4 payments for your self-
employed work.
How much you pay when employed and self-employed depends on your combined income from
all your jobs.
Your can defer (delay) paying your National Insurance if youre not sure what your earnings will
be and you dont want to overpay.
Company directors
There are different rules for National Insurance for company directors.
Share fishermen
If youre a share fisherman - ie youre employed on a British fishing boat but not under a contract
of service - you pay a different Class 2 rate. In 2014 to 2015 the rate is 3.40 a week. This
contributes towards the basic State Pension, Job Seekers Allowance and the other benefits self-
employed people pay towards.
Find out how much youve paid
Apply to HM Revenue and Customs (HMRC) to check your National Insurance record..
Refunds
If you think youve overpaid, you can claim a refund.
4. What National Insurance is for

National Insurance contributions count towards the benefits in the table.
Class 1: Class 2: self- Class 3: voluntary

Benefit
employees employed contributions
Basic State Pension Yes Yes Yes
Additional State Pension Yes No No
New State Pension Yes Yes Yes
Contribution-based Jobseekers
Yes No No
Allowance
Contribution-based Employment
Yes Yes No
and Support Allowance
Maternity Allowance Yes Yes No
Bereavement benefits Yes Yes Yes
Class 4 contributions paid by self-employed people with a profit over 7,956 dont count towards
state benefits.
5. Help if you're not working

Your benefits could be affected if there are gaps in your National Insurance record. National
Insurance credits help protect them.
You can get credits if you cant pay National Insurance contributions, for example, if:
you cant work due to illness

youre caring for someone
If youre not working or getting credits you can also top up your National Insurance with
voluntary contributions.
6. Change of circumstance
If your address or name changes or you get married or enter a civil partnership you must contact
HMRC.
If you start or stop self-employment you need to contact HMRC and let them know.
Last updated: 6 August 2014
Apply for a National Insurance number

Call Jobcentre Plus to apply for a National Insurance number.
You must have the right to work or study in the UK to get a National Insurance number.
Jobcentre Plus might ask you to go to an interview to confirm your identity.
If youre moving to the UK you can only apply once youre here.
Jobcentre Plus application line

Telephone: 0345 600 0643
Monday to Friday, 8am to 6pm
Welsh language: 0345 602 1491

Monday to Friday, 8:30am to 5pm
Find out about call charges
If you already have a National Insurance number and lost it, you should fill in form CA5403 or
contact the helpline.
National Insurance number interview

Jobcentre Plus may write to you and ask you to come to an interview where youll be asked about
your circumstances and why you need a National Insurance number.
The letter will also tell you which documents to bring to prove your identity, eg:
passport/identity card
residence permit
birth/adoption certificate
marriage/civil partnership certificate
driving licence
You turned 16 and didnt get a number

You should automatically get a National Insurance number just before your 16th birthday if you
live in the UK.
Call the National Insurance numbers helpline if you didnt get one and youre under 20.
If youre over 20, contact the Jobcentre Plus application line.

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GOV.

You pay National Insurance if youre:

The exact amount you pay depends on:

how much you earn

When you stop paying

If youre self-employed you stop paying:

2. Your National Insurance number

Its made up of letters and numbers and never changes.

Who uses your National Insurance number

HM Revenue and Customs (HMRC)

3. National Insurance contributions - how

12% on your weekly earnings between 153 and 805

Rates for the 2014 to 2015 tax year

Annual profits Class 2 Class 4

Rates for the 2013 to 2014 tax year

Annual profits Class 2 Class 4

You must arrange payments for Class 2 yourself.

Youre employed and self-employed

4. What National Insurance is for

Class 1: Class 2: self- Class 3: voluntary

5. Help if you're not working

you cant work due to illness

Last updated: 6 August 2014

Apply for a National Insurance number

Jobcentre Plus application line

Welsh language: 0345 602 1491

National Insurance number interview

You turned 16 and didnt get a number

If youre over 20, contact the Jobcentre Plus application line.

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