Jurisdiction(s):
United Kingdom

UK National Insurance contributions on employment: Classes 1 and 1A - scope, liability, calculation, collection and accounting

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Practice notes

This Practice Note offers an introduction to National Insurance contributions (NICs), outlining the classes of NICs and providing further detail on Classes 1 and 1A, being those most pertinent to employment situations. The stated aim of National Insurance contributions is to finance and confer eligibility for certain state benefits, such as the state pension, as well as other social security benefits, for example Jobseeker's Allowance and Maternity Allowance. NICs are administered by the National Insurance Contributions Office (NICO), which forms part of HMRC. Individuals are required to possess a National Insurance number, which ensures that any contributions paid by them are correctly recorded against their own name only. The number is lifelong and is made up of two letters, followed by six numbers and a final letter. People are sent their National Insurance number shortly before their 16th birthday. This number will appear on all tax-related documents (such as payslips, P60s, etc). An individual can apply to HMRC for a National Insurance number if they need one (for example, if they come to the UK to work)

Classes of NICs

There are currently six different classes of NICs...

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Web page updated on 22/05/2026

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