Introduction

Most people who work have to pay National Insurance contributions (NICs).

National Insurance is distinct from income tax paid as an employed or self-employed individual.

NICs are collected by HM Revenue & Customs and go towards benefits, such as a state pension and unemployment benefit. The class of NICs an individual pays can affect their entitlement to benefits.

This guide gives an overview of each class and how they apply in some typical circumstances.

Subjects covered in this guide

• Introduction
• National Insurance contribution types
• National Insurance contributions for employers and employees
• National Insurance contributions for the self-employed
• I’m both an employer and an employee