National Insurance Contributions count towards certain benefits and pensions. You pay National Insurance Contributions to qualify for these. You need a National Insurance number from their National Insurance record.
Who pays National Insurance?
You pay mandatory National Insurance if:
- You’re 16 or over
- An employee earning more than £242 per week from one job
- Self-employed and making a profit of more than £12,570 a year
You usually do not pay National Insurance, but may still qualify for certain benefits and the State Pension if you’re either:
- An employee earning from £123 to £242 a week from one job
- Self-employed and your profits are £6,725 or more a year
Your contributions are treated as having been paid to protect your National Insurance record.
Types of National Insurance
There are different types of National Insurance.
The type you pay, depends on your employment status and how much you earn. Your National Insurance number remains the same for life. It’s made u of 2 letters, 6 numbers and a final letter.
Confused about National Insurance and what it means for your benefits or pension?
Book a free appointment with our advisor:
Find out more HMRC information or email taxhelp@royaldeaf.org.uk
