National Insurance

National insurance is a payment to the government that allows you access to:

• State pension (which you can claim when you are state pension age).
• Sick pay if you are sick and cannot work.
• Maternity pay if you have a baby.
• Some newstyle benefits such as:
  • Jobseeker's Allowance
  • Contribution-based Employment and Support Allowance.
• Bereavement benefits (See eligibility here).

It pays towards public services like:

• NHS.
• Social security benefits.
• Statutory Maternity Pay (Up to 39 weeks).
• Statutory Sick Pay.

You need to pay it to:

• Get money when you cannot work.
• Work and earn money legally over a certain amount.
  • Your rate of NI payment will depend on your earnings.
  • Here are the current GOV contribution rates.
• Have your pension.

Who needs to pay NI?

You will usually need to pay NI if you are:

• Employed (work for someone else)
  • NI will paid out of your salary automatically.
• Self-employed
  • You will pay NI yourself when you do your taxes.
• Aged 16 or over and earn above a certain amount.
  • If you work for someone this is above £242 per week
  • If you are self-employed this is with profits over £12,570 a year.
• Claiming certain benefits, are working and earn above the threshold like
  • Universal Credit 
  • Carer's Allowance.
• Your employer also pays an amount of NI depending on your salary.

Who doesn't need to pay?

• Anyone under 16 years old.
• People over state pension age.
• Low earners
  • That is under £242 a week.
• NI is not paid on benefits like:
  • PIP.
  • Child Benefit.
  • UC (if you are not working).

A NIN:

• Is a unique number given to you by the government.
• Makes sure that you are contributing the right amount of NI.
• Keeps track of earnings, benefits and taxes.
• Helps you get benefits and pension when needed.

You need a NIN to:

• Work in the UK (for an employer or self-employed).
• Pay for NI.
• Claim benefits.
• Get your pension.

How do I get one?

• You may already have one if you are 16 or over.
• Your employer may have it.
• It will appear on payslips, P60s and letters from HMRC.
• If you can't find these then you can ring the NI helpline
  • On 0300 200 3500
  • They can send you your NIN in the post.
• If you don't have one you can ring HMRC or apply online.
  • You may need to prove your identity (ID) 
  • See this page for information on ID.