National Insurance Members  

This resource explains what National Insurance is, what it is for and the various categories (Classes) of National Insurance.

About National Insurance

National Insurance (NI) is like a tax, but the money raised provides for some of the main benefits of the social security system, such as the State retirement pension, sick pay, and maternity pay. NI contributions are usually paid when people work between the age of 16 and the State retirement age (currently 65 to 67). There are different rules for payment depending on whether you work as employed, self-employed, or choose to pay voluntary contributions. There are currently four types of NI, Class 1 (for the employed), Class 2 and Class 4 (for the self-employed), and Class 3 (for those who pay voluntary contributions). There is talk about merging Class 2 and Class 4 but no concrete proposals have yet surfaced. Most illustrators are self-employed ? they work for themselves. Some form their own limited company and work through that, being treated for NI purposes as an employee.

National Insurance and Pensions