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 ?
Employer National Insurance Contributions also increase by 1 per cent to 13.8 per cent from 6 April 2011, as previously announced.
This means you and your employer pay a slightly lower National Insurance contribution and you are promised a certain amount of superannuation pension in place of the PS26 or so you are giving up.
"It is a welcome move but the new rules also brought down the curtain on an employer's right to recover statutory sick pay from HMRC through their monthly National Insurance contributions. They can only be reimbursed for absences up to 5 April 2014 as long as the claim is made by the end of the 2015/16 tax year.
Employee National Insurance contributions are paid at 12% on earnings between PS107 and PS817 per week, but only at 2% on earnings above that.
In the middle of my working life (about the time I moved into the public sector), I was told that my National Insurance contributions were not for my pension provision, but were providing the pensions for the current pensioners.
Mr Davies said an alternative policy proposed by Labour at the last General Election to raise National Insurance contributions could have cost the NHS pounds 30m a year.
Most notably with National Insurance contributions. While we are pleased to see exemptions for new businesses taking on staff, we'd have liked to see this made available across the whole of the UK and extended to existing small businesses, which have the experience and capacity to take on more people.
THE proposed increase in National Insurance contributions is quite rightly seen as a tax on jobs, threatening economic recovery at a time when businesses need all the help they can get.
But leaders believe increasing National Insurance Contributions by one per cent will cost 57,000 jobs in the UK.
The Federation of Small Businesses said it was concerned that a temporary boost to employment over Christmas was coming to an end and urged the Government to freeze National Insurance contributions and introduce an NI rebate for small firms.
Men and women will only need 30 years of National Insurance contributions to get the full amount - a reduction from normally 39 years for women and 44 for men.
Mr Stopforth said: "The Chancellor's Pre-Budget Report sets out some good schemes to support businesses - like the extension to the Enterprise Finance Guarantee - but these have been undermined by the announcement of an additional hike to National Insurance Contributions.

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