National Insurance Contributions

This module will enable you to

• Describe the basics of our NI system
• Recognise the 2024 rates and thresholds
• Outline how Class 1 NICs on employment income are dealt with
• Understand when Class 1A and 1B contributions are applicable
• Discuss how Class 2 and Class 4 NICs affect the self-employed
• Explore the practicalities of voluntary contributions, like Class 3 and Class 2 payments
• Follow a process to claim employment allowance

About the module

National Insurance Contributions (NICs) account for around 20% of the UK’s total tax receipts each year, which equates to more than £180 billion. NICs are a way to establish entitlement to a number of state benefits, both for workers and their families.

NICs are payable by those who are employed, self-employed or employed by their own company, and different rates and rules apply to different circumstances. The class of contributions an individual pays depends on their employment status, earnings, and whether they have any gaps in their NI record.

This short course looks at the detail of each class of contribution, and also considers employment allowance and statutory payments.