National Insurance Contributions: Rate, How to Pay NI Contributions, Check Statement

The National Insurance Contribution is the tax payments which are being paid by the British employees and employers to provide funds to various UK Government plans. One can check the NIC Rate in the article given below. You can also check the details on How to Pay NI Contributions and check the NIC Statement Online. The UK NI Contribution Rates are given in the post below. One must go through the complete article to get all the updates on the NI Contributions Categories. 

National Insurance Contributions : Rate, How to Pay NI Contributions, Check Statement Online

National Insurance Contributions

The UK Government has started the National Insurance Contributions which are paid by the UK employees and employers in order to fund the various UK Government benefit programs. The payroll deductions will be made to make the contributions and it will depend upon various criteria like the employees age and their total or monthly earnings. In order to make the contributions, the National Insurance Number will be needed by the individuals.  It stands as the taxes which are paid by the employees and the employers of the UK. The employees are given an option to make extra payments to make a hike in the pension amount which they will get back. 

The UK NI Contributions can be made in case you are of age above 16 years and earn a certain amount or have self employed profits over a given amount. This contribution helps to build the entitlement to certain events like State Pension and Maternity Allowance. It serves as the tax on earnings and the National Insurance Contributions will be deducted from your salary so you need not do anything for that case. In case you earn extra, you will have to pay more of the National Insurance. You will not be able to get the extra amount back if you are earning lower in the other months. 

We have created various tables which will guide you as to how much has been deducted under the various categories. The contributions of the NI will be recorded against the names of the employees.

National Insurance Contributions Rates

Contribution National Insurance Contribution 
State United Kingdom 
Made by Employers and employees 
Contribution collected Through payroll deductions 
Age 16+
Money 242 Pound 
Post type Finance 
Website gov.uk
The National Insurance Contributions is the contribution which is deducted from the salary and will be paid as pension to them. The contribution is collected through the salary deductions. The self-employed person pays both portions as a part of contributions. The table below will provide the details on the National Insurance Contributions Rates by the employers of the UK.

National Insurance Contribution Working

The NIC is the tax paid by the individuals and the Corporations in the UK. It is the tax payment which is just like FICA in the US and both the employers and employees pay a share of National Insurance contributions (NIC). The amount is collected through the payroll deductions and the self employed personals. To make the payments, every payee will get the National Insurance Number which is a unique identifier number given by the Government. One can apply for the NI Number through online mode and the additions are made against one taxpayer’s initials.

NI Contribution Eligibility @ gov.uk

  • One has to follow the below mentioned National Insurance Contribution Eligibility.
  • One needs to be 16 years or older
  • One must earn pound 242 a week 
  • One has to be self-employed and have an annual profit of £ 12570 or more.
  • Employees can make additional contributions for the future.

National Insurance Contributions Programs

Refer to the table below to know the details on the gov.uk National Insurance Contributions.

Particulars National Insurance Contributions Class 1: Employees National Insurance Contributions Class 2: Self-Employed National Insurance Contributions Class 3: Voluntary Contribution 
Basic state pension Yes YesYes
Additional state pension YesNo No 
New state pension YesYesYes
New style job seekers allowance YesNo No 
Employment and support allowance YesYesNo
Maternity allowance YesYesNo
Bereavement support payment YesYesNo

National Insurance Contribution Categories 

Category Description 
AGeneral employees of UK  
BMarried women and widows of UK 
CIndividuals of UK over the state Pension age 
HApprentices who are less than 25 years of age 
JIndividuals who can defer payments 
MIndividuals of age below 21 years 
VVeterans at first job 
ZIndividuals of age below 21 who make the payment through another employer. 

National Insurance Contribution Rates

Category Name £ 123 to £ 242£ 242.01 to £ 967Over £ 967
A0%12%2%
B0%5.85%2%
C
H0%12%2%
J0%2%2%
M0%12%2%
V0%12%2%
Z0%2%2%

National Insurance Number By gov.uk

The UK National Insurance Number stands for a very unique number which is given to a particular individual. The tag or the unique number is used to identify the UK’s National Insurance values and is the same as the other numbers which are used in the US. The NI Number provides the assurance that the payments of the employees and employers are recorded against their name. 

NIC Rates for Employers

Category £123 to £175£175.01 to £481£481.01 to £967£967 and above 
A0%13.8%13.8%13.8%
B0%13.8%13.8%13.8%
C0%13.8%13.8%13.8%
F0%0%13.8%13.8%
H0%0%0%13.8%
I0%0%13.8%13.8%
J0%13.8%13.8%13.8%
L0%0%13.8%13.8%
M0%0%0%13.8%
0%0%13.8%13.8%
V0%0%0%13.8%
Z0%0%0%13.8%

National Insurance Contribution Benefits

Benefit name Particulars 
Bereavement benefits If a widowed spouse met the NIC, they will get a one time payment of 2000 eurosThe allowance amount is dependent upon the eligibility  
Universal credit benefitsEmployment and support allowance Income support and job seekers allowance Working tax creditChild tax credit Housing benefit These benefits are given in a single payment 
Incapacity benefit The individuals who are not working due to illness for 4 days of more and less than 28 weeks. If an employee still does not return to work, they will not get SSP.
State pension The ones who have reached the limit for the pension will get the pension amount 

How to Pay NI Contributions?

If you make the off payment, you can contact the National Insurance Office and ask them for the 18 digit reference number. If you are not able to contact the number, you can pay by cheque with your National Insurance number.

What if NI Contribution is Not Paid?

  • You might not get the state pension.
  • You will not get the perks like maternity allowance, employment and support system and other benefits
  • Fines and penalties will be imposed to you
  • HMRC can take steps to collect debt and even collect the money direct from your Bank account
  • You will have to pay both Class 2 and Class 4 NI Contribution if you work for yourself. 

gov.uk National Insurance Contribution Links

National Insurance Contribution Check Link 

FATs on National Insurance Contributions gov.uk Details

In which country is the NIC Applicable?

The NI Contribution is applicable in the UK.

What are the NIC Rates for Employers?

The NI Contribution Rates for Employers can be checked through the table above.

What is Class 1 for NIC?

The Class 1 for National Insurance Contribution is Employees.

What is the minimum age limit under the National Insurance Contribution?

The minimum age limit under the UK National Insurance Contribution is 16 years.

What if one has not paid the NI Contribution?

In case one has not paid the UK National Insurance Contribution, they will be imposed penalties and fines and will be not allowed to get the perks. 

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