National Insurance (NI)

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 are required to pay NI contributions (NICs) to build up your entitlement to certain social security benefits, including the state pension.

Paying National Insurance contributions

The following rates of NICs apply for the 2011-12 tax year:

  • if earnings are above £139 a week and up to £817 per week you pay 12 % of this amount
  • if earnings are above £817 a week you also pay 2% of this
  • if you are a member of your employer's contracted out pension scheme you will pay a lower amount as an employee

If you run your own business you may also have to pay NICs. This depends on the level of your earnings from self-employment.

For more detailed information about National Insurance rates and allowances visit the HM Revenue and Customs or contact the National Insurance helpline: 0845 302 1479

National Insurance Number (NINO)

You will usually receive a NINO card when you reach the age of 16. Always quote your NINO correctly. You should give it to your employer when you start work. You will also need to quote it if you need to contact HM Revenue and Customs. Using your own NINO correctly will make sure the NI contributions that you pay are recorded against your name and will help to prevent identity theft. It will also help to ensure you pay the right amount of tax.

How to get a National Insurance Number (NINO)

If you are an international student and you want to work you should apply for a NINO if you don’t have one by telephoning the Jobcentre Plus NINO allocation service helpline on 0845 600 0643.

If you have more than one job

If you work for more than one employer (and their businesses are not associated with each other), each employer will look at the earning thresholds separately.

For example, if you have two employers paying you £60 each per week you would not have to pay NI contributions as both employers are paying you below the £110 earnings threshold (even though the total you earn is £120). This is different to income tax where all of your income is added together and compared to your personal allowance to see if you have tax to pay.

For further information about NICs: