National Insurance, or NI, is a mandatory tax paid by UK salaried employees over 16 who earn more than £190 per week, or the self-employed who make a profit of £6,725 or more per year.
From 6th November 2022, the government reversed the 1.25% increase it made to National Insurance earlier in the year.
Contents of this page
Introduced in 1911 and expanded after the war in 1948, National Insurance is a mandatory tax paid by most workers in the UK.
Some of the money raised this way is earmarked for state benefits for workers and their families, including state pensions.
The money is collected by HMRC, the UK tax authority, and for most people this happens automatically as the sums are deducted by employers as part of their payroll processes (PAYE).
Both employees and employers make an NI payment. Employees see this as a deduction from their gross salary, and it shows up as a separate line on their payslips. The self-employed must make their NI payments as part of their annual tax return.
Everyone over the age of 16 in the UK is issued an unique National Insurance number by the Department of Work and Pensions. These contain two letters, six numbers and then a final letter.
<aside> ℹ️ If you have not received a National Insurance number, the UK Government website has a useful page
<aside> 🆘 If you’re struggling with your bills, our cost-of-living resources **page has the latest advice.
<aside> ℹ️ Which? provides some useful overview materials about National Insurance on their website, including an explanatory video https://www.which.co.uk/money/tax/national-insurance/what-is-national-insurance-a01s79v8uxrp
<aside> ℹ️ There are some useful National Insurance resources on the UK Government website
Overview of National Insurance
Check your national insurance record
Check your tax code for the current tax year
<aside> 🤖 Learn more about how we calculate your NI costs
How Nous calculates your National Insurance forecast
Last updated: November 2022