What is a National Insurance Number?
- Your National Insurance number is your own personal account number.
- The number makes sure that the National Insurance contributions and tax you pay are properly recorded on your account.
- It also acts as a reference number for the whole social security system.
How do I apply for a National Insurance Number?
- All the details are on the HMRC website: Applying for a National Insurance number
- Alternatively, call the National Insurance Registrations Helpline on 0845 915 7006 (Monday to Friday 8:30am to 5pm)
Who pays National Insurance?
- You pay National Insurance contributions if you're an employee or self-employed and you're aged 16 and over, as long as your earnings are more than a certain level.
- If you're employed you stop paying National Insurance contributions as soon as you reach State Pension age.
- If you are self-employed, you stop paying Class 2 contributions as soon as you reach State Pension age and Class 4 contributions from the start of the tax year after the one in which you reach State Pension age.
- State Pension Ages:
- State Pension age is 65 for men born before 6 December 1953 and 60 for women born before 6 April 1950.
- State Pension age for women born on or after 6 April 1950 is gradually increasing and will reach 65 in November 2018. From December 2018.
- State Pension age for women and men will gradually increase from 65 and reach 66 by October 2020.
- Some people also pay voluntary National Insurance contributions.
- For example, you might choose to pay them if you:
- aren't working and are not claiming state benefits
- haven't paid enough National Insurance contributions in a year to count for the State Pension or other long term state benefits
- live abroad and want to maintain your state benefits entitlement
Do students have to pay National Insurance?
- As of April 2013 HMRC withdrew PAYE and NI concessions for students.
- Students are treated in the same way as all other employees for PAYE tax and National Insurance contributions purposes.
How much National Insurance will I pay?
- The rates shown below are for the 2018-19 tax year:
Class 1 National Insurance thresholds
You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).
| Class 1 National Insurance thresholds | 2018 to 2019 |
|---|---|
| LEL | £116 per week £503 per month £6,032 per year |
| Primary Threshold (PT) | £162 per week £702 per month £8,424 per year |
| Secondary Threshold (ST) | £162 per week £702 per month £8,424 per year |
| Upper Secondary Threshold (under 21) (UST) | £892 per week £3,863 per month £46,350 per year |
| Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) | £892 per week £3,863 per month £46,350 per year |
| Upper Earnings Limit (UEL) | £892 per week £3,863 per month £46,350 per year |
- See the HMRC site for further information on National Insurance: http://www.hmrc.gov.uk/rates/nic.htm
- Or try the HMRC National Insurance calculator to give you a detailed calculation.