National Insurance has seen many changes and developments since its introduction in 1911.
Paid by working people from the age of 16 to they become eligible for a State Pension, a unique National Insurance number is allocated to every child when Child Benefit is first claimed. This number can be used as an identifier in the same way as a taxpayers UTR when speaking to HMRC.
Amounts paid over time influence our eligibility to claim certain benefits, including the state pension, although people in some circumstances may receive National Insurance credits which protect their access rights to those benefits.
National Insurance income is a key part of the UK Treasury’s annual income, of around 18%.
In this section we’ve addressed some of the more common questions or areas around the subject. If you’d like to see any specific questions answered in future, please let us know!
Protect your State Pension!
Your entitlement to a State Pension depends on two things:
– The amounts you’ve paid in National Insurance over the years.
– The accuracy of HMRC’s records of those payments.
The amounts you pay are easy to monitor, but the second is more tricky! In this video we share some of the horror stories we’ve heard recently where HMRC’s records have been seriously lacking.
What are National Insurance Classes?
There are five separate National Insurance Classes; in this post we’ll examine each, as they cause some confusion!
NEW Health & Social Care Levy
In our last round-up, we reported on the Times article suggesting National Insurance contributions were likely to rise. That speculation has now been confirmed – almost! We now have a new Health & Social Care Levy.
Rather than being an increase in National Insurance contributions, the increase will be deemed a separate levy, the income from which will be ring fenced to pay towards health and social care.
Why not take a look at these sections too, as there is some overlap between our categories and we’d hate you to miss out!
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Can I just say we are so pleased that we have moved to Baranov Associates. As we discussed when you visited, we had to find a way to take the stress out of all of the financials and you’re doing that for us! We can see how to use Xero more efficiently and so with us being as on top of it as we can be and with you and Liz we feel a lot more confident about our business being in good shape.
Mrs S James, Sandbanks Capital Partners Limited
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