what "national insurance contributions" is?

Question

do I have to pay for it? how it works?

Answer 1

National Insurance covers your contribution to health and social security benefits that most working people pay and receive when necessary. It helps pay for the Health service and times when you might be out of work or needing other benefits - perhaps.

If you earn over £84 a week you have to pay National Insurance. Often it is deducted by your employer if you have one. If you are self employed then you have to pay it yourself. You can be prosecuted for not paying when eligible to pay. If you miss paying then it can affect your pension too.

http://www.hmrc.gov.uk/employers/rates_and_limits.htm#5a is the official site on this.

Answer 2

National insurance is a tax which is charged at 8% of your taxable income. The difference with National Insurance is that it is used to pay for the health service, the benefits service and towards the State Pension. If you are permanently employed your employer will also pay an additional 11% of your taxable income. This is called employers National Insurance.

Answer 3

National Insurance is a system of taxes, and related social security benefits. It is automatically taken out of everyone's wages by the government in the UK. It's supposed to pay for your National State Pension when you retire or your unemployment benefit should you find yourself out of work.

If you are on benefits or a student then you are exempt, otherwise every UK resident who is employed must make NI contributions.

Answer 4

They are government taxes which should go to-wards paying old-age-pensions and health related bodies. The amount is a per-centage of your weekly wages and it is deducted each week by your empoloyer for the government. Unless you are a student, you have no choice you have to pay it.

Answer 5

http://www.hmrc.gov.uk/nic/offices.htm

Click the link its complex