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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. How to pay- You pay National Insurance with your tax. Your employer will take it from your wages before you get paid. Your payslip will show your contributions. If you’re a director of a limited company, you may also be your own employee and pay Class 1 National Insurance through your PAYE payroll. If you’re self-employed You pay Class 2 and Class 4 National Insurance, depending on your profits. Most people pay both through Self Assessment. There are special rules for people with specific jobs (such as examiners or people who run businesses involving land or property) who don’t pay Class 2 National Insurance through Self Assessment. The amount of National Insurance you pay depends on your employment status and how much you earn. If you’re employed- You pay Class 1 National Insurance contributions. The rates for most people for the 2017 to 2018 tax year are: Your pay Class 1 National Insurance rate £157 to £866 a week (£680 to £3,750 a month) 12% Over £866 a week (£3,750 a month) 2% You’ll pay less if: you’re a married woman or widow with a valid ‘certificate of election’ you’re deferring National Insurance because you’ve got more than one job
__________________ Answered By StudyChaCha Member |