7.3 National Insurance contributions

You pay National Insurance if you are 16 years or older and earn above a threshold level of income.

The threshold is presently:

  1. Earning £242 per week if you are employed.

    Or

  2. Making a profit of more than £12,570 a year if you are self-employed.

By making National Insurance contributions you qualify for benefits such as the national state pension when you retire.

Starting work

Timing: Allow 3 minutes

Watch this video by HMRC that explains your National Insurance number, which you receive just after your 16th birthday.

It also explains the benefits that you are entitled to when you make your National Insurance contributions.

Use the box below to make notes (or write it down in your notepad).

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Moving on

 

When you are ready, you can move on to Session 8: Beware of financial fraud [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] .

 

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7.2 Income tax

References