Daily Archives: January 2, 2015

National Insurance Contributions (NIC) : What are the different classes of NICs and which should you pay?

Individuals have to pay NICs in addition to income tax on income earned above a certain limit. NI contributions are payable as they will build up your entitlement to certain social security benefits. You will need to pay NIC if you are over the age of 16 and you are: self-employed or employed and your earnings are above a certain level. You stop paying NICs when you reach state pension age. Below is a list of the main classes of NICS and their Principle characteristics. Class 1 Primary Contributions: Paid by Employee. Paid on percentage of earnings above a certain amount. Stop at state pension age or at the end […]