NATIONAL INSURANCE PAYMENTS are part of all taxpayers’ lives. As they’re currently under governmental review in some areas, let’s look at some of the overall information from the HMRC website.
Overview
You pay National Insurance contributions to qualify for certain benefits and the State Pension.
You pay National Insurance if you’re 16 or over and either:
- an employee earning above £157 a week
- self-employed and making a profit of £6,025 or more a year
You need a National Insurance number before you can start paying National Insurance contributions.
If you earn between £113 and £157 a week, your contributions are treated as having been paid to protect your National Insurance record.
National Insurance classes
There are different types of National Insurance (known as ‘classes’). The type you pay depends on your employment status and how much you earn, and whether you have any gaps in your National Insurance record.
When you stop paying
If you’re employed, you stop paying Class 1 National Insurance when you reach the State Pension age.
If you’re self-employed you stop paying:
- Class 2 National Insurance when you reach State Pension age
- Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age
From HMRC website: https://www.gov.uk/national-insurance
Quids and Quills 