Why do I pay?

Posted by admin on March 12th, 2010 under Information • No Comments

Benefits that depend on National Insurance contributions

Your entitlement to the following benefits and/or the amount you can get will depend on your (or in some cases your spouse or civil partner’s) contributions:

  • contribution-based Jobseeker’s Allowance (Class 1 National Insurance contributions only)
  • Incapacity Benefit (if you can’t work for long periods due to illness or injury)
  • contribution-based Employment and Support Allowance (ESA)
  • State Pension
  • additional State Pension (Class 1 National Insurance contributions only)
  • Widowed Parents’ Allowance
  • Bereavement Allowance
  • Bereavement Payment


Rates

Posted by admin on March 12th, 2010 under Information • No Comments

Rates

The following amounts apply for the 2009-10 tax year:

If you’re employed

  • if you earn above £110 a week (the ‘earnings threshold’) and up to £844 per week you pay 11 per cent of this amount as ‘Class 1′ National Insurance contributions
  • you also pay one per cent of earnings above £844 a week as Class 1 National Insurance contributions
  • you will pay a lower amount as an employee if you are a member of your employer’s contracted out pension scheme

If you’re self-employed

  • you pay ‘Class 2′ National Insurance contributions at a flat rate weekly amount of £2.40
  • you also pay ‘Class 4′ National Insurance contributions as a percentage of your taxable profits – you pay eight per cent on annual taxable profits between £5,715 and £43,875 and one per cent on any taxable profit over that amount
  • if your earnings in the 2009-10 tax year are expected to be less than £5,075 then you may be entitled to the Small Earnings Exception, meaning you don’t have to pay any Class 2 National Insurance contributions – you can apply for Small Earnings Exception certificate for the 2009-10 tax year on form CF10

You can check all current rates here: http://www.hmrc.gov.uk/rates/nic.htm


How to get one?

Posted by admin on March 12th, 2010 under Information • 2 Comments

How to get a National Insurance number

If you don’t already have a National Insurance number you must apply for one:

  • as soon as you start work
  • as soon as you or your partner claims benefit

To be able to apply you must be:

  • over 16 years of age
  • resident in the United Kingdom

If you are a parent or guardian and receiving Child Benefit, any children you care for will automatically get a card showing their National Insurance number just before they reach the age of 16.

To apply for a National Insurance number you will need to telephone the Jobcentre plus allocation service helpline on 0845 600 0643. They will make sure you need a number and arrange for you to undertake an evidence of identity interview.

Yours

Posted by admin on March 12th, 2010 under Information • No Comments

Your National Insurance number

card

Your National Insurance number is your own personal account number. The number ensures that the contributions and the tax you pay are properly recorded on your account. It also acts as a reference number for the whole social security system.

You pay contributions if you are an employee or self-employed and you are aged 16 and over, providing your earnings are more than a certain level. You stop paying  contributions at State Retirement age. This is currently 65 for men and 60 for women but will gradually increase to 65 for women over the period 2010 to 2020.

You will get a national insurance number shortly before your 16th birthday.