National Insurance
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:
- 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.
NI is paid by people aged 16 or over, who have a NI number and their earnings are above a certain threshold.
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 and so on for electoral registration purposes, student loans, pensions, ISAs and so on.
Contents |
[edit] Classes of National Insurance
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:
- 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.
- 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.
- Class 4 National Insurance is paid by the self-employed people earning above a threshold.
[edit] 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.
[edit] 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.
[edit] External references
Featured articles and news
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
CIOB Construction Manager of the Year 2025
Just one of the winners at the CIOB Awards 2025.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.
Construction Products Reform Green Paper and Consultation
Still time to respond as consultation closes on 21 May 2025.
Resilient façade systems for smog reduction in Shanghai
A technical approach using computer simulation and analysis of solar radiation, wind patterns, and ventilation.