Which national insurance category

National Insurance category letters are used during payroll runs. Employers work out how much needs to be contributed by using these. Contributions are made both from the employer and employee. Your employer will also pay into your National Insurance Contributions but these rates will be slightly different from yours. Your category can be found on your Pay slip. Employees who fall under this category are married women and widows entitled to pay reduced national insurance.

If you earn over this amount, you will be deducted at 5. By continuing to browse you consent to our use of cookies. You can understand more and change your cookies preferences here.

Your National Insurance contributions depend on your employment status and how much you earn. Not everybody has to pay National Insurance, but contributions count towards your state pension and other benefits. If you have an employer, you'll pay Class 1 National Insurance contributions. This also includes if you're self-employed but work for an employer - it's your employer's job to pay your National Insurance through your payslips, as well as their own employer contributions of In September , the government announced plans to introduce a health and social care levy of 1.

See our news story for the full details. It's worth finding out if you're exempt from paying National Insurance. If you don't have to pay National Insurance you might be eligible for National Insurance credits, or you can choose to make voluntary contributions. National Insurance is calculated on gross earnings before tax or pension deductions above an 'earnings threshold'. If you earn less than this, you won't pay National Insurance contributions. If you earn less than this amount you'll pay no National Insurance contributions.

Use our National Insurance calculator for to discover how much you'll pay this year in , as well as next year in You can also see what you would owe for previous years, based on your income - simply select the tax year you want to see from the dropdown menu. The figures shown indicate what you'd owe on an annual basis, and assume you've worked for the full tax year. Find out more: tax for the self-employed — this comprehensive guide explains which taxes you are likely to have to pay.

If you're missing any National Insurance contributions, you can fill in gaps by paying Class 3 'voluntary' contributions. Find out more: making voluntary National Insurance contributions. Until , married women could opt to make National Insurance contributions at a reduced rate. Employers pay Class 1A and 1B National Insurance on expenses and benefits they give to their employees.

They must also pay Class 1A on some other lump sum payments, for example redundancy payments. You also need to make checks when you recruit and employ someone. You need to register with HMRC so you can pay tax and national insurance for your employees.

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