National Insurance

National Insurance is a type of earnings-related tax that is payable as soon as you become employed or self empoyed.

Based on contributions from employers and employees, it provides payments to the sick, unemployed and retired people as well as medical services.

There are six different categories of contributions, for example employed people pay class 1 contributions.

Social security contributions, or National Insurance (NI) as it is called, is also deducted directly from your salary if you are employed.  There are different rules if you are self employed.  Further information is available from HM Revenue and Customs at: www.hmrc.gov.uk

How do I apply for a National Insurance (NI) number?

No one has a legal right to a NI number but there are circumstances you are legally obliged to formally apply for one and to register for NI purposes.

If you do not already have an NI number you must apply for one as soon as you start work or you or your partner claims benefit.

You should contact your local social security office and ask for an appointment to be interviewed for a NI number.

At the interview you will need to be able to provide your identity.

Find out more about National Insurance at: www.dwp.gov.uk/publications/dwp/2003/gl31_oct.pdf