5.8.2 National Insurance

Almost everybody in the UK who is in paid work, including self-employed people, must pay National Insurance Contributions. The money raised from National Insurance Contributions is used to pay for state benefits and services such as the state retirement pension and the National Health Service (NHS).

Employees have their National Insurance Contributions deducted from their pay by their employer. People who are self-employed need to pay National Insurance Contributions themselves. Anyone who does not pay enough National Insurance Contributions will not be able to receive certain contributory benefits such as Jobseeker’s Allowance or a full state retirement pension. Some workers, such as part-time workers, may not qualify for statutory payments such as maternity pay if they do not earn enough.

Further guidance about National Insurance Contributions is available on HMRC’s website at www.hmrc.gov.uk/ni .