national insurance contributions


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National Insurance Contributions

Deductions from paychecks or other payments made to National Insurance in the United Kingdom. National Insurance pays for the state pension, unemployment benefits and also funds the National Health Service. Both employees and employers must make National Insurance contributions, and employers must make further contributions on certain employee benefits. They do not fund other government functions, but the government may borrow against them.

national insurance contributions

the payments made by employers and their employees to the UK government up to a specified maximum limit. National insurance contributions, together with other government budgetary receipts, are used to finance state pensions, sick pay, jobseekers allowance, etc.

There are currently (2005) four classes of national insurance contributions; Class 1 (employees/employers), Class 2 and 4 (self-employed) and Class 3 (voluntary organizations). Under the most common class, Class 1, contributions are paid by employees at the rate of 11% on weekly earnings between £89 (minimum) and £585 (maximum); employers' contributions are paid at the rate of 12.2% on weekly earnings of employees greater than £84, with no upper limit. See BUDGET (GOVERNMENT), SOCIAL SECURITY BENEFITS.

national insurance contributions

the payments made by employers and their employees to the UK government, on a two-thirds and one-thirds basis respectively up to a specified maximum limit. National insurance contributions, together with other government budgetary receipts, are used to finance state pensions, social security benefits, the JOBSEEKERS ALLOWANCE, etc. See BUDGET ( GOVERNMENT).
References in periodicals archive ?
In the UK overall, the number of businesses that have requested a National Insurance Contribution holiday plummeted to a new low of 400 in December 2012, down 44% from the 710 applications made in the same month the year before.
8% or around pounds 300 per year in National Insurance Contributions.
But investigators from the Department for Work and Pensions discovered that he was working as a general labourer for a sheet metal works when his National Insurance contributions came through.
The FPB's Welsh spokesman, Andrew Mathias, said business rates were a key priority for small firms as it was usually their most expensive tax, after employers' national insurance contributions.
The winner of the overall award, for the organisation judged to have demonstrated a special achievement in its work with young people, was the Inland Revenue National Insurance Contributions Office.
In its budget submission the Institute of Directors also called on the Chancellor to reverse increases in National Insurance contributions planned to come into effect in April.
BRITAIN'S chartered accountants have called on Chancellor Gordon Brown to simplify the tax system by merging income tax and national insurance contributions into a single system.
QI HAVE made National Insurance contributions all my working life.
Do you remember the extra 1p that was placed on employers' and employees' National Insurance contributions that was going to save the health service?
At the same time only 30% of women are currently entitled to the full state pension when they retire, and among these only 24% qualify for it on the basis of their own National Insurance contributions, according to the Department for Work and Pensions.
n Introduction of a 'citizen's pension' based on residency rather than National Insurance contributions, to help women who took time off work to look after their family.
Another tax increase that will kick in from next April is an increase in National Insurance Contributions of 1pc.

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