NATIONAL INSURANCE (NI)
NI contributions count towards your State Pension, Maternity Alowance, Bereavement Benefit etc. In order to make National Insurance contributions, you will have to apply for a National Insurance Number (NINO).
WHAT IS NINO
An NI number acts as your personal account which keeps records of all your tax and NI contributions. It also acts as a reference number within the social security system i.e. your local council, HM Revenue and Custom, Department for Work and Pensions and also when applying for a student loan. NI number consists of letters and numbers and it is individual to you and must be kept safe.
You will only receive NI number once and will keep the same number for the rest of your life.
WHAT IF YOU DON’T HAVE A NINO
If you have a work permit to work in the UK you should apply for a NINO as soon as you enter UK, even if you do not yet have a job. You can apply for employment in the UK without the NI number but as soon as you start working you must apply for it. You must have a work permit (if your citizenship requires it) to be able to apply for NI number. Alternatively, you must have a right to study in the UK to apply for your NI number.
Any job offers that involve cash in hand without paying Tax or National Insurance are against the law!
WHERE TO APPLY FOR NINO
You will have to attend an Evidence Identity Interview (EII) to prove your identity as well as to explain your situation and reasons for applying for NI number. You will be asked to bring various documents; (1) proving your identity and if employed (2) proving your employment. Some of these documents may include your passport or driving license, birth/adoption certificate, work permit, contract of employment, payslips etc. Photocopies will NOT be accepted. The list of the exact documents required will be posted to you in a letter together with the date, time and location of your interview.
You can either visit Jobcentre plus and ask for an application and arrange an interview or call the Jobcentre Plus on 0800 055 6688 for any help regarding your NI application. You can apply over the phone by calling the National Employment NINO application line on 0845 600 0643 (Monday to Friday, 8am to 6pm).
HOW MUCH DO YOU HAVE TO PAY
The NI rate depends on how much you earn (just as the Income Tax contribution)
Rates for 2017/2018 tax year:
• If you earn between £157 and £866 per week you pay 12%
• if you earn more than £866 per week, you pay extra 2% of all your earnings over £866
HOW TO PAY
You NI contribution is automatically deducted from your wages, together with your TAX contribution. You can check the exact amount deducted on your payslip.
For VOLUNTARY CONTRIBUTIONS click here.
Exceptions apply. For more details and information check HM Revenue and Custom website
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