Day 15 of Christmas


What are the classes of NI contributions? 



The National Insurance number 


One has a National Insurance number to make sure your National Insurance contributions and tax are recorded against your name only. 


It’s made up of letters and numbers and never changes. 


You can find your National Insurance number: 


  • on one’s payslip 
  • on one’s P60 
  • on letters about one’s tax, pension or benefits 


Who uses your National Insurance number 

These organisations need to know what your number is: 


HM Revenue and Customs (HMRC) 

  • one’s employer 
  • the Department for Work and Pensions (which includes Jobcentre Plus and the Pension, Disability and Carers Service), if one claims state benefits, or in Northern Ireland the Department for Social Development 
  • one local council, if one claims Housing Benefit, or the Northern Ireland Housing Executive 
  • Electoral Registration Officers (to check one’s identity when yone register to vote) 
  • the Student Loan Company, if one applies for a student loan 
  • one’s pension provider if one has a personal or stakeholder pension 
  • one’s Individual Savings Account (ISA) provider, if one opens an ISA 
  • authorised financial service providers who help one to buy and sell investments like shares, bonds and derivatives – one can check if your provider is authorised 
  • Veterans UK 


in the National Insurance section of your personal tax account 


  • Class 1 Employees earning more than £242 a week and under State Pension age – they’re automatically deducted by your employer 
  • Class 1A or 1B Employers pay these directly on their employee’s expenses or benefits 
  • Class 2 Self-employed people earning profits of more than £11,908 a year. If your profits are less than £6,725 a year, one can choose to pay voluntary contributions to fill or avoid gaps in one’s National Insurance record 
  • Class 3 Voluntary contributions – one can pay them to fill or avoid gaps in your National Insurance record 
  • Class 4 Self-employed people earning profits of £11,909 or more a year 



#ni #bookkeeper #nicontributions #class1 #class2 #class3 #class4 #payroll #employer #employee #icb #icbbookkeeper #hmrc #contributions #tax