You are currently viewing our locale site. For more relevant information select a location from the drop down or dismiss to continue browsing. Find out more about National Insurance on our accounting glossary.
Abhishek is the director of a limited company and needs to set up a PAYE scheme in order to receive a salary. He does this by registering online with HMRC as an employer. Shortly after registering, Abhishek receives his new employers starter pack which includes his PAYE reference numbers.
Every time the company his employer pays him, he runs Payroll using FreeAgent which automatically submits the information directly to HMRC in real time. Your payroll software will tell you how much you owe, and report this to HMRC. Not everybody has to pay National Insurance, but contributions count towards your state pension and other benefits. If you have an employer, you'll pay Class 1 National Insurance contributions. This also includes if you're self-employed but work for an employer - it's your employer's job to pay your National Insurance through your payslips, as well as their own employer contributions of In September , the government announced plans to introduce a health and social care levy of 1.
See our news story for the full details. It's worth finding out if you're exempt from paying National Insurance. If you don't have to pay National Insurance you might be eligible for National Insurance credits, or you can choose to make voluntary contributions. National Insurance is calculated on gross earnings before tax or pension deductions above an 'earnings threshold'. If you earn less than this, you won't pay National Insurance contributions.
If you earn less than this amount you'll pay no National Insurance contributions. Use our National Insurance calculator for to discover how much you'll pay this year in , as well as next year in You can also see what you would owe for previous years, based on your income - simply select the tax year you want to see from the dropdown menu.
The figures shown indicate what you'd owe on an annual basis, and assume you've worked for the full tax year. Find out more: tax for the self-employed — this comprehensive guide explains which taxes you are likely to have to pay. If you're missing any National Insurance contributions, you can fill in gaps by paying Class 3 'voluntary' contributions.
Find out more: making voluntary National Insurance contributions. Until , married women could opt to make National Insurance contributions at a reduced rate. They stopped building up entitlement to state pension in their own right and instead relied on their husband's National Insurance contributions record.
Women who took this option can continue to make reduced National Insurance contributions or pay at the full rate and build up individual pension entitlement.
Since , any women in this position who have yet to reach state pension age will no longer be eligible. Part of Get your business ready to employ staff: step by step.
National Insurance rates and categories. Print entire guide. Step 1 : Decide what type of employee you need. Check whether you need full time or part time staff Check the different types of employment status. Check how much the National Minimum Wage is You are currently viewing: Find out how much National Insurance you need to pay for your employees Check how much sick pay your employees are eligible for Check how much you need to pay towards your employee's pension Check how much Maternity Leave you need to pay your employees Check how much Paternity Leave you need to pay your employees.
Step 2 : Make your workplace safe and accessible for employees. Prevent discrimination Make your workplace accessible for employees with disabilities or health conditions Keep employee information and data safe Fire safety Health and safety You also need to make checks when you recruit and employ someone.
Find out what you need to check when you employ someone. Register as an employer and set up PAYE Choose how to run payroll If you decide to run payroll yourself, choose payroll software. Step 4 : Check your responsibilities around workplace pensions. Understand your pension responsibilities as an employer.
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