National Insurance: introduction (original) (raw)

Overview

You pay National Insurance contributions to qualify for certain benefits and the State Pension.

You need a National Insurance number to make sure your National Insurance contributions and tax are recorded against your name only.

Who pays National Insurance

You pay mandatory National Insurance if you’re 16 or over and are either:

• 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.

National Insurance classes

There are different types of National Insurance (known as ‘classes’).

The type you pay depends on your employment status and how much you earn.

When you stop paying

If you’re employed, you stop paying Class 1 National Insurance when you reach State Pension age.

If you’re self-employed you stop paying Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age.