What are Class 1 National Insurance Contributions?

Answer 1

Class 1 national insurance are those that we pay when working for a company, both the employee and employer contributions are called class 1 and employer national insurance contributions on non-cash benefits are class 1a. Class2 is self employed weekly contributions of £2.10. Class 3 are voluntary contributions and Class 4 are standard self employed contributions.

Answer 2

Class 1 contributions are paid by employed people and their employers. If you're an employer, you'll need to collect employee contributions out of staff wages or salary.

The employee's (primary) contribution is deducted from an employee's salary and paid to HM Revenue & Customs (HMRC).

The employer's (secondary) contribution is paid by the employer to HMRC.

Class 1 National Insurance contributions (NICs) are calculated and deducted within an employer's payroll system. A single payment of PAYE tax and Class 1 NICs is made to HMRC, usually on a monthly basis. You should be aware that NICs for directors are calculated differently.

Taxable benefits for employees, eg a company car, may also require payment of Class 1A contributions. These are paid by the employer at the employer's Class 1 secondary rate on the taxable value of any benefit.

This extract gives the definition - the website will go into more explicit detail!!

Answer 3

Class 1's are normal PAYE NIC's (pay as you earn) for the employed.
Class 2's are the self employed contributions.
Class 3's are the self employed voluntary contributions.
Class 4's are the contributions stolen from the self employed and the end of the tax year.

Answer 4

Its the standard NI class for all employees. You pay 11% of earnings over £90 (approx) per week. This money gives you rights to old-age pension, unemployment benefit etc.

Married women in the 70's/80's were able to pay a reduced % rate, and over 65/65 year-olds dont pay anything.

If you have a company pension scheme, you may pay less %.


Other NI classes appy to self-employed and other types of earnings.

Answer 5

class 1 ni cons are what you pay if you have a full time job if you are self-employed you pay a different class

Answer 6

This is what you pay as well as your tax. Take a look at your payslip. It should say N.I. This amount is 11% on weekly earnings of 97.01- 645.00.