When do you start paying National Insurance and how much is it?

Confused as to what the whole National Insurance thing entails? We’ve got you (Picture: Getty Images)

Whilst it may not be the most exciting birthday present, UK residents typically receive their National Insurance number shortly before they turn 16.

This usually happens when a parent or guardian has filled out a Child Benefit claim form on your behalf.

If you haven’t received one by then, or if you didn’t grow up in the UK, you will need to apply for one yourself.

In this article, you’ll learn all you need to know about your National Insurance number (NIN), from why we need one, where to find it, and the most important question of all: how much National Insurance do we pay?

What is a National Insurance number?

A National Insurance number identifies individuals within the UK’s social security system.

It’s unique to every person, and it’s needed to ensure your National Insurance – a tax on earnings and self-employed profits – is recorded against your name. A NIN is necessary to make sure the correct amount of tax is deducted from your earnings. The last thing you want is to be giving away too much of your hard-earned cash, right?

Having a National Insurance number is also really beneficial, as it allows you to access social security benefits, including information on your State Pension and payroll details.

What does a National Insurance number look like?

The number is made up of two letters, six numbers and one final letter, and remains the same for life. For example, QQ123456B.

For those aged 16 to 19 without one, the Government website recommends applying online. 

When do you start paying National Insurance?

You start paying for National Insurance (NI) if you’re over 16 years old and earning or receiving self-employed profits over a certain amount.

You have to pay mandatory NI if you are:

An employee earning above £242 a week from one job Self-employed and making a profit of £12,570 a year

NI goes towards funding public services like the NHS, pension schemes, unemployment benefits and sickness and disability allowances.

If you are paid through a Pay As You Earn (PAYE) system, NI contributions are automatically deducted from your salary, so you won’t need to do anything to ensure you’re paying it.

You should see your NI contribution deducted from your pay cheque.

If you’re self-employed, then your NI contributions will be calculated based on your Self Assessment tax return.

When do you stop paying National Insurance?

As per the Government website, you stop making NI payments from 6 April (start of the tax year) after you reach State Pension age, which is currently 66.

You do not pay NI after 66 – unless you’re self-employed and pay Class 4 contributions (meaning your profits are more than £12,570 a year).

Depending on your employment status, your National Insurance contributions may be different (Picture: Getty Images)

How much National Insurance do you pay?

The amount of NI you pay depends on your employment status and how much you earn.

Employers also pay NI at a different rate, based on the earnings of their employees.

As for how much you pay exactly, let’s break it down. From 6 April 2025 to 5 April 2026:

• If you’re employed: Employed people pay Class 1 NI. If you earn £242 to £967 a week (£1,048 to £4,189 a month), your rate is 8%. If you earn more than £967 per week (£4,189 a month), it’s an additional 2%.

• If you’re self-employed: Self-employed people who make over £12,570 a year pay Class 4 NI. If your profits are £6,845 or more, your Class 2 contributions are treated as having been paid to protect your NI record. If your profits are less than £6,725 a year, you do not have to pay anything but you can choose to pay voluntary Class 2 contributions. Most people pay via Self Assessment, but how much you contribute depends on your profits.

• If you’re employed and self-employed: Many people fall into both categories. This means your employer will deduct your Class 1 NI from your wages, while you may have to pay Class 4 for any self-employed work. How much you pay depends on the combined wages. But don’t worry, HMRC will tell you exactly how much you owe once you’ve filed your Self Assessment tax return.

You can use a calculator from Which? to help get an estimate on how much you will pay.

Where to find your National Insurance number

You can find your NIN on multiple documents, from P60s, payslips, tax letters, pensions and benefits.

If you have the HMRC app, you can locate it on your personal tax account.

If none of these apply, you can request an online or mail copy from HMRC.