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 ?
Despite a peak in applications for the scheme in 2011, of the 8,000 new business start-ups in Wales in 2011, only 655 applied for a National Insurance Contribution holiday.
A Possibly, if between the ages of 17-22 you earned over the minimum threshold to pay National Insurance contributions.
If a person is unable to work and pay national insurance contributions, the national insurance scheme may provide protection for her/him in the form of credited contributions.
This means that civil partners who do not have enough National Insurance contributions in their own right may qualify for a basic State Pension when their partners who were born after April 1950 reach State Pension age.
John Walker, FSB national chairman, said: "We have been saying for some time that small businesses would be encouraged to take on staff if national insurance contributions were reduced.
When affected workers reach retirement age, they may not receive their full entitlement of state earnings-related pension (SERPS), which is dependent on their record of National Insurance contributions.
IN HIS Budget, Gordon Brown raised the rate of National Insurance contributions by one per cent.
But it did not repeat promises made by the Conservatives at the previous national election in 2015, under then prime minister David Cameron, not to increase income tax or national insurance contributions.
Adrian Rawlins, of Wishaw near Sutton Coldfield, escaped with a suspended two-year sentence after he failed to pay income tax or national insurance contributions for himself or the employees at his industrial cleaning company.
Adrian Rawlins, of Wishaw, near Sutton Coldfield, escaped with a suspended two-year sentence after he failed to pay Income Tax or National Insurance Contributions for himself or the employees at his industrial cleaning company.
Employers of young apprentices are set to save thousands of pounds after the government abolished employer National Insurance contributions for apprentices under 25 years of age.
I am on PAYE but they take employers' national insurance contributions from my wages every week.

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