National Insurance explained
🪪 National Insurance is a scheme that is paid into by everyone living in the UK, even if you move from abroad.
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What is National Insurance?
National Insurance is a system of taxes and contributions in the UK. National Insurance contributions are paid by both employees and employers, with a portion deducted from the employee's pay. The amount of National Insurance contributions you pay depends on your income.
What do National Insurance payments cover?
National insurance provides benefits and entitlements for UK citizens and residents, including:
State Pension 🧓
National Insurance contributions help fund the state pension, which is a regular payment for those who have reached retirement age.
Jobseeker's Allowance 🔍
This is a form of financial support for those who are unemployed and looking for work.
Employment and Support Allowance 🏥
This is a form of financial support for those who are unable to work due to illness or disability.
Maternity and Paternity Leave 🐣
National Insurance contributions help fund maternity and paternity leave for new parents.
Bereavement Benefits 🫶
National Insurance contributions provide financial support for those who have lost a spouse or civil partner.
Who has to register for and pay National Insurance?
Almost everyone living and working in the UK has to register for and pay National Insurance. This includes:
- Residents of the UK, including those from other countries who have the right to work or study in the UK
- Self-employed individuals
- Citizens of the UK
- International students studying in the UK for more than 6 months.
Those earning under £242 a week (£1,048 a month) may be exempt from paying National Insurance. However, you still need to register for a National Insurance number even if you are exempt from paying.
What is a National Insurance Number (NIN)?
A National Insurance Number is your own personal identification within the system. Your National Insurance Number will make sure your contributions and tax are recorded against your name only.
A National Insurance number is made up of letters and numbers, it never changes.
Some movers may find that they don't need to apply for a National Insurance Number and that one has already been set up and added to the back of the BRP.
How do you register for National Insurance?
To register for a National Insurance (NI) number you need to:
1. Arrive in the UK 🇬🇧
To register for an NI number, you need to be in the UK and have the right to work or study here.
2. Contact the Department for Work and Pensions (DWP) 📲
You can call the DWP on 0800 141 2075 to start the process of registering for an NI number. You can also visit your nearest JobCentre Plus office to make an appointment.
3. Provide Identification 🪪
You will need to provide proof of identity and evidence of your right to work or study in the UK. This may include your passport, visa or biometric residency permit.
4. Attend an interview 👋
You will be required to attend an interview to confirm your details and identity. You may also need to provide additional documentation, such as your birth certificate or proof of address.
5. Receive your National Insurance number 📮
After the interview, the DWP will issue you with an NI number. It can take up to 4 weeks to receive your number by post.
Can you work without a National Insurance Number?
Yes, although your employer will deduct and withhold National Insurance contributions at a higher rate. To make sure you have the most money in your pocket when you get paid, prioritise registering for National Insurance once you land in the UK.
