National Insurance Explained

Last week we covered income Tax, and this week we need to finish that off by talking about the other income tax, which masquerades as something else - National Insurance.
NOTE: This video relates to the 2019/2020 tax year in the UK.

[@ant420]

They should be showing this in schools haha, thanks keep it up

[@PPPouni]

Thank you!! This was really helpful

[@JtruUk]

Thanks so much for the explanation.

[@lucasteixeiranl4473]

Amazing! Thanks

[@isaanman5399]

You could add if you take up residence in a Country outside the EEA + Switzerland that does not have a reciprocal social security agreement with the UK you will have your pension frozen at the rate you become none resident & not receive any indexed increases & there are over 500,000 on these frozen pensions & 95% of those live in Commonwealth Countries. Also if you don’t claim the pension it will be deferred & for every year you defer it rises by nearly 5.8% plus the yearly indexed increases & this also includes those who live in Countries were the pension is paid frozen but once you start claiming the pension it will be frozen at that rate.

[@jayaveld124]

Thank you

[@feixjones]

Really good video, helpful and concise. Keep up the good work!

[@ms.z461]

😂 excellent thumbnail - great content, well set out

[@suededogs9670]

Did you know, that's why places like Tesco only offer short hour contracts , it saves them having to pay national insurance. SNEEKY

[@danieltroop8448]

hello. When putting in my self assessment tax return to verify my identity i have to put the employee’s contributions due on all earnings above the pt that is stated on my p60. The only lines i have on my p60 are: total income received, MINUS personal allowance, TOTAL INCOME ON WHICH TAX IS DUE, pay pensions profit etc (basic rate x 20%), PLUS class 4 national insurance contributions, class 2 national insurance contributions, INCOME TAX DUE, MINUS tax deducted from CIS and trading income. which answer should i put to the question - employee’s contributions due on all earnings above the pt?TIA

[@bsemwayo]

I am on a 5-year skills worker visa. Does it make sense for me to contribute NI? I am 37

[@GlikeLuther]

loving the salmon xx

[@GlikeLuther]

thanks man xx

[@GlikeLuther]

no worries, have a good day x

[@benpowell9966]

Can a voluntary contribution of Nat ins help compete the required missing weeks for maternity pay?

[@J1122]

bang your head against something hard

[@supermankelly]

So I assume since you are using the word FULL you then still get a state pension based on how much you have paid. How do you know how much this will be? I wouldn't want to make additional payments of £10K to get a full pension if the partial pension is only £5K less over 20 years. Assuming that's how long I'll live after retiring at 65.

[@supermankelly]

Also, if I moved to the UK 20 years before retirement, so don't have 35 years of paying, but have contributed more in 20 years than most in 35, I don't get a full pension??

[@wowwowwow185]

i always thought it was for Nhs as well how comes if you've paid your full 35 years stamp can the government extend your pension age is that not theft my age is now 66 half they stolen 10,000 of me

[@MannyRiberaOriginal]

What if you have student debt?

[@aladeeenn]

It doesn’t make sense if you’re employee and on 12% and make 45000£ a year you pay 5400£ but if you on 2% and make 60000£ you will pay 1200£

[@PeteMatthew]

It's tiered, so you pay 12% on income up to a certain point and then 2% on any earnings above that. It's not that once you hit the threshold all your income gets charged at 2% - that would not make sense!

[@MAFIAgala]

1 question wat if in 5 years work I never apply for national insurance tax refund

[@oktawiancrispus5476]

Great work and nice material. It will be nice if you can explain how to pay gaps in contributions for specific years. For example, I have to pay £ 30 in 2015 and £ 795 in 2017. I would like to pay only for 2015, but I don't know how to do it? "You’ll need your 18 character reference number when you pay. Where to find your Class 3 National Insurance reference number You’ll find it on your bill." What kind of bill? I have no any bill, no p60. Form CA5601 does not allow me to choose only 1 year from the past to cover the gaps. Thanks for help

[@isaanman5399]

First you can only pay up the previous 6 tax years before the tax year we are in & you can’t go back further than that. I rang them up & had to gave my NI number ready to give. Then they sent me a statement. Then I rang them again & and got them to send me the class 3 I owe for the previous 6 years. As I only needed to pay 3 years to get to 35 years of contributions I picked out the lowest 3 years & sent them a bank draft stating b which years it was to pay for. Then I rang them again & requested another statement which shows I have paid 35 years & I made a couple of copies & keep them in case there is any issue when I claim my pension.

[@skycastle9901]

After 13 more years of paying in, my state pension will reach its maximum amount. A year after that, ( the 14th year) I will have completed my 35th year. After that I will still have seven more years of paying my national insurance, but this will not increase the final amount. What i wish to ask is can i add EXTRA payments, voluntarily, during the next 13 years to increase the final amount, or will that make no difference?

[@paediatriciandoctorzahidhu8360]

Hi I am joining NHS as doctor and my age is 46 years old, Am I eligible for state pension.. please guide me..

[@isaanman5399]

I am not sure what you saying. You have to pay in 35 full years to get the maximum state pension & if you work & pay more years you get no extra pension. NI contributions are not only for state pension it also covers Job Seekers Allowance, Employment & Support Allowance, Statuary Sick Pay & Bereavement Benefit.

[@pasufi]

@@paediatriciandoctorzahidhu8360 Yes. You will pay NI contributions which will make you eligible for the state pension. If you work till state retirement age (currently 67years of age), you will have paid 21 years of NI and therefore you will be eligible to a state pension, but not the full amount possible, which requires 35 years of contribution. You will also be paying into your NHS pension scheme, and will be eligible for your NHS pension, at your state retirement age. You will get 1/54th i.e. 1.8% of your annual salary for each of those years, added up at the time of your retirement (2015 scheme). It is slightly more complex, but I have kept it simple!

[@paediatriciandoctorzahidhu8360]

Hi sir, I am. Joining NHS as doctor and my age is 46 years now... Am. I eligible for state pension?

[@PeteMatthew]

If you have a UK National Insurance number (you'll be issued with one once you start working) then yes, you will build up eligibility for the State Pension over time. You may not get a full state pension if you're only starting to accrue it now - you need 35 years of National Insurance payments to qualify for the full state pension. And no, you can't opt out. Hope that helps!

[@paediatriciandoctorzahidhu8360]

@@PeteMatthew Thanks a lot for ur reply.. Is the national insurance mandatory?

[@paediatriciandoctorzahidhu8360]

Can we opt out of National insurance?

[@supermankelly]

No.

[@samdonohoe9796]

So if I pay into the national insurance for say 14 years I get nothing for it? And if I'm a high earner I pay less in it than somebody working class but receive the same? Wtf

[@MeaningfulMoney]

Nooooo. You’ll get 14/35ths of the full state pension. And no, you don’t pay less if you’re a high earner, you pay more.

[@paediatriciandoctorzahidhu8360]

@@MeaningfulMoney hi I am 46 years and joining as doctor in NHS.. am I eligible for state pension and how much?...

[@pasufi]

@@paediatriciandoctorzahidhu8360 Yes. You will pay NI contributions which will make you eligible for the state pension. If you work till state retirement age (currently 67years of age), you will have paid 21 years of NI and therefore you will be eligible to a state pension, but not the full amount possible, which requires 35 years of contribution. You will also be paying into your NHS pension scheme, and will be eligible for your NHS pension, at your state retirement age. You will get 1/54th i.e. 1.8% of your annual salary for each of those years, added up at the time of your retirement (2015 scheme).

[@triprprts]

do i have to pay when i am 16 and go to sixth form

[@MeaningfulMoney]

Potentially. Depends on how much you earn

[@triprprts]

@@MeaningfulMoney what if you earn 0 without a job

[@MeaningfulMoney]

Definitely not. It's in the video. You only pay National Insurance if you earn more than £183 a week.

[@triprprts]

@@MeaningfulMoney thank you

[@M.S.Fitness]

So I basically pay for the people in life who skate by on the benefits system. I wish healthcare wasn't free as I don't use ANY of their services. There are too many people on housing benefit and Universal credit who also receive child Benefit, some of these people even claim this money while residing in another country,why am I paying for these scummy people? The UK has one of the dumbest systems in the world