National Insurance - Revision history

Designing Buildings at 07:18, 24 February 2021

2021-02-24T07:18:34Z

← Older revision		Revision as of 07:18, 24 February 2021
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	* [https://www.gov.uk/browse/tax/national-insurance https://www.gov.uk/browse/tax/national-insurance]		* [https://www.gov.uk/browse/tax/national-insurance https://www.gov.uk/browse/tax/national-insurance]

−	[[Category:Taxation]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:Taxation]]

Designing Buildings at 12:19, 26 July 2019

2019-07-26T12:19:56Z

← Older revision		Revision as of 12:19, 26 July 2019
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−	National Insurance in the UK is a contributory system that allows people to receive certain state benefits ~~and the state pension~~ as long as they have made the required contributions.	+	National Insurance (NI) in the UK is a contributory system that allows people to receive certain state benefits as long as they have made the required contributions. These benefits may include:

−	~~NI is paid by people aged 16 or over, who have a NI number~~ and ~~either:~~	+	* Basic state pension.
		+	* Additional state pension.
		+	* New state pension.
		+	* Contribution-based jobseeker’s allowance.
		+	* Contribution-based employment and support allowance.
		+	* Maternity allowance.
		+	* Bereavement support payment.

−	* Their earnings ~~as employees~~ are above ~~£166 per week or~~	+	NI is paid by people aged 16 or over, who have a NI number and their earnings are above a certain threshold.
−	* They are self-employed and making a profit of £6,365 or more a ~~year~~	+

−	Throughout their working life, each person has a NI number comprising letters and numbers which ensures their contributions are credited only to their name. The number can be found on their payslips, P60, letters from HMRC, pensions and benefits, and in their personal tax account.	+	Throughout their working life, each person has a NI number comprising letters and numbers which ensures their contributions are credited only to their name. The number can be found on their payslips, P60 forms, letters from HMRC, pensions and benefits, and in their personal tax account.

−	NI numbers are used by HM Revenue and Customs (HMRC), employers, the Department for Work and Pensions, local councils, for electoral registration purposes, student loans, ~~pension providers~~ and ~~ISA and authorised financial service providers. Because they are~~ so ~~useful and all-pervasive, many individuals cast their number to memory~~.	+	NI numbers are used by HM Revenue and Customs (HMRC), employers, the Department for Work and Pensions, local councils and so on for electoral registration purposes, student loans, pensions, ISAs and so on.

−	~~Depending on the class~~ of National Insurance ~~(NI) applicable (see below), NI contributions are paid to make people aged 16 or over eligible to receive certain state benefits which may include:~~	+	= Classes of National Insurance =

−	* Basic State Pension	+	There are a number of different types of NI depending on a person’s employment status, their earnings and whether they have any gaps in their National Insurance record:
−	* Additional State Pension	+
−	* New State Pension	+
−	* Contribution-based Jobseeker’s Allowance	+
−	* Contribution-based Employment and ~~Support Allowance~~	+
−	* Maternity Allowance	+
−	* Bereavement Support Payment.	+

−	~~= Different classes of National Insurance =~~	+	* Class1 National Insurance is paid by people in employment earning above a threshold. The contributions are automatically deducted from wages by employers.
−		+	* Class 1A or 1B National Insurance are paid by employers directly on their employee’s expenses or benefits.
−	~~There are different types of NI depending on a person’s employment status, their earnings and whether they have any gaps in their National Insurance record. The classes are:~~	+	* Class 2 National Insurance is paid by self-employed people earning above a threshold. Those earning below the threshold can choose to pay voluntary contributions.
−		+	* Class 3 National Insurance are voluntary contributions that can be paid by individuals to fill or avoid gaps in their NI contributions record.
−	* Class1 National Insurance is paid by people in employment earning ~~more than £166/wk. until they reach the state pension age~~. The contributions are automatically deducted from wages by employers.	+	* Class 4 National Insurance is paid by the self-employed people earning above a threshold.
−	* Class 1A or 1B National Insurance are paid by employers directly on their employee’s expenses or benefits	+
−	* Class 2 National Insurance is paid by self-employed people ~~only if~~ earning ~~more than £6,365/yr.) until they reach the state pension age~~. Those earning ~~less than £6,365/yr.~~ can choose to pay voluntary contributions.	+
−	* Class 3 National Insurance are voluntary contributions that can be paid by individuals to fill or avoid gaps in NI contributions record.	+
−	* Class 4 National Insurance is paid by the self-employed ~~(who generate profits over £8,632/yr.) until April 6 after they have reached the state pension age~~.	+

	= Applying for a National Insurance number =		= Applying for a National Insurance number =
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	Foreign nationals planning to work in the UK cannot do so until they have a NI number which will allow them to find employment, apply for a student loan or claim benefits.		Foreign nationals planning to work in the UK cannot do so until they have a NI number which will allow them to find employment, apply for a student loan or claim benefits.

−	= ~~External sources~~ =	+	= Related articles on Designing Buildings Wiki =
		+
		+	* Capital gains tax.
		+	* Construction industry scheme.
		+	* Construction recruitment agency.
		+	* Employee.
		+	* Hourly rate.
		+	* Human resource management in construction.
		+	* IR35.
		+	* PAYE.
		+	* Payroll companies.
		+	* Tax relief.
		+	* Umbrella companies.
		+	* Tax.
		+	* VAT.

−	~~Further information on National Insurance can be found on the Gov.UK website [https://www.gov.uk/browse/tax/national-insurance here.]~~	+	= External references =

−	[https://www.gov.uk/browse/tax/national-insurance https://www.gov.uk/browse/tax/national-insurance]	+	* [https://www.gov.uk/browse/tax/national-insurance https://www.gov.uk/browse/tax/national-insurance]

	[[Category:Taxation]]		[[Category:Taxation]]

Editor: Created page with "National Insurance in the UK is a contributory system that allows people to receive certain state benefits and the state pension as long as they have made the required contributi..."

2019-07-16T16:44:54Z

Created page with "National Insurance in the UK is a contributory system that allows people to receive certain state benefits and the state pension as long as they have made the required contributi..."

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National Insurance in the UK is a contributory system that allows people to receive certain state benefits and the state pension as long as they have made the required contributions.

NI is paid by people aged 16 or over, who have a NI number and either:

* Their earnings as employees are above £166 per week or
* They are self-employed and making a profit of £6,365 or more a year

Throughout their working life, each person has a NI number comprising letters and numbers which ensures their contributions are credited only to their name. The number can be found on their payslips, P60, letters from HMRC, pensions and benefits, and in their personal tax account.

NI numbers are used by HM Revenue and Customs (HMRC), employers, the Department for Work and Pensions, local councils, for electoral registration purposes, student loans, pension providers and ISA and authorised financial service providers. Because they are so useful and all-pervasive, many individuals cast their number to memory.

Depending on the class of National Insurance (NI) applicable (see below), NI contributions are paid to make people aged 16 or over eligible to receive certain state benefits which may include:

* Basic State Pension
* Additional State Pension
* New State Pension
* Contribution-based Jobseeker’s Allowance
* Contribution-based Employment and Support Allowance
* Maternity Allowance
* Bereavement Support Payment.

= Different classes of National Insurance =

There are different types of NI depending on a person’s employment status, their earnings and whether they have any gaps in their National Insurance record. The classes are:

* Class1 National Insurance is paid by people in employment earning more than £166/wk. until they reach the state pension age. The contributions are automatically deducted from wages by employers.
* Class 1A or 1B National Insurance are paid by employers directly on their employee’s expenses or benefits
* Class 2 National Insurance is paid by self-employed people only if earning more than £6,365/yr.) until they reach the state pension age. Those earning less than £6,365/yr. can choose to pay voluntary contributions.
* Class 3 National Insurance are voluntary contributions that can be paid by individuals to fill or avoid gaps in NI contributions record.
* Class 4 National Insurance is paid by the self-employed (who generate profits over £8,632/yr.) until April 6 after they have reached the state pension age.

= Applying for a National Insurance number =

Individuals are normally sent their National Insurance number automatically in the three months before their 16th birthday as long as they live in the UK; and a parent has submitted a Child Benefit claim on their behalf.

Foreign nationals planning to work in the UK cannot do so until they have a NI number which will allow them to find employment, apply for a student loan or claim benefits.

= External sources =

Further information on National Insurance can be found on the Gov.UK website [https://www.gov.uk/browse/tax/national-insurance here.]

[https://www.gov.uk/browse/tax/national-insurance https://www.gov.uk/browse/tax/national-insurance]

[[Category:Taxation]]