(1) |
Class 1 Primary National Insurance For Employees earnings at or above the rate of Primary Threshold (PT). |
(2) |
Class 1 Secondary National Insurance For Employers paying employees earnings at or above the rate of Secondary Threshold. |
(3) |
Class 1A National Insurance For employers paying benefits in kind to employees and directors. |
(4) |
Class 2 and Class 4 National Insurance For self-employed Individual runs business for himself. |
(5) |
Class 3 National Insurance For individual pays voluntarily National Insurance to fill in or avoid gaps on his State Pension Records |
(1) |
NICs are paid by: (a) employees; (b) self-employed on their earnings over profit earning threshold; (c) employers on the earnings earned by and benefits granted to employees. |
(2) |
NICs can be paid by individual voluntarily when: (a) self-employed whose profit is below profit earning threshold; (b) filling in the year gap of State Pension Records. |
(3) |
NIC is not levied on: (a) income from savings; (b) income from investments; (c) rental income from property; (d) private pensions; (e) state pensions; and (f) other social security benefits. |
(1) |
Employment Most employers in the UK will ask for NINO when on boarding a new employee, it is necessary for payroll purpose. |
(2) |
State benefits NINOs are used to record Nation Insurance Contributions, which fund various state benefits, including the state pension, jobseeker’s allowance, and maternity allowance etc. |
(3) |
Tax NINO is crucial for tax purposes, it helps HMRC track people’s income and ensure correct amount of tax is paid, if an individual does not have a NINO, they may be subject to higher tax rate. |
(4) |
Pension NINO is instrumental in calculating state pension, which is based on national insurance contributions. |
(5) |
Voting Electoral Registration Office uses NINO to prove the identity when registering to vote. |
(6) |
Student Loan NINO uses to apply for a student loan with The Student Loans Company. |
(7) |
Investment NINO also uses to open an individual savings Account (ISA) and authorise financial service providers to help to buy and sell investments like shares, bonds and derivatives. |
(1) |
live in the UK; |
(2) |
have the right to work in the UK; |
(3) |
are working, looking for work or have an offer to start work. |
(1) |
A passport from any country; |
(2) |
A biometric resident permit (BRP); |
(3) |
A national identity card from an EU country or from Norway, Liechtenstein or Switzerland. |
Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |