National Insurance

As well as income tax being taken from your salary, payroll will also deduct National Insurance contributions. The company has to pay National Insurance contributions for you as well.

You pay National Insurance contributions to build up your entitlement to social security benefits which are provided in certain events such as unemployment, sickness or other incapacity, maternity, and retirement. Each of these benefits has its own different qualifying conditions, which must be satisfied before payment can be made.

You stop paying National Insurance contributions in the year you reach State Pension age. 

Top tips

  • If you don't have enough National Insurance contributions or credits for a particular tax year you may get a letter telling you that the year won't count towards your basic State Pension and bereavement benefits. The letter explains how voluntary contributions can make the year count, and what to do if you think the gap information is wrong.
  • Find out more about National Insurance from HMRC.

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