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
ECA Industry Awards 2024 shortlist revealed
22 leading businesses from across the electrotechnical and engineering services sector.
Government unveils Skills England strategy
Skills England to transform opportunities and drive growth.
New Government Hub for York Given Planning Green Light
For up to 2,600 civil servants, due for completion by 2028.
Construction Skills Certification Scheme cards
July update on Professionally Qualified and Academically Qualified Person Cards.
BSRIA Briefing 2024, November 22
Sustainable Futures: Redefining Retrofit for Net Zero Living.
The CLC on driving competency in the retrofit sector
Previously published roadmap on skills for net zero.
The first labour government King's speech in fifteen years
Construction industry reactions, support and some concern.
CIOB Retrofit of Buildings Technical Information Sheet
What retrofit is, the approach to be taken and processes to be followed.
Adapting Historic Buildings for Energy and Carbon Efficiency
Historic England advice note 18, free download published.
10 retrofit projects revisited 10 years after completion.
Information orders, building liability orders and SPVs
Key BSA terms and how they impact special purpose vehicles.
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.