sajad torkamani

In a nutshell

National Insurance is a form of tax on earnings paid by employees and employers to fund the welfare system in the UK. Things like:

  • State pension
  • NHS
  • Benefits – housing, jobseeker’s allowance, Universal Credit
  • Disability benefits
  • Maternity allowance
  • And so on…

Who pays National Insurance?

  • 16+ year-olds who are either
    • 1. An employee earning £242+/week, or
    • 2. Self-employed and making a profit of £12,570+/month
  • Company directors

When do you stop paying?

When you reach the State Pension age (66 right now).

How much do you pay?

Your pay
Class 1 National Insurance rate
£242 to £967 a week (£1,048 to £4,189 a month)12%
Over £967 a week (£4,189 a month)2%
You’re a company directorDifferent rules (🎵)


Tagged: UK

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