National Insurance
If you don't already have a NI number, you must apply for one as soon as you start work. Call Jobcentre Plus help line on 0845 600 0643 to apply.
The NI allocation service will verify if you need a number and arrange for you to have an evidence of identity interview.
Employees:
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If you've signed up for your employer's contracted-out pension scheme, you'll pay a lower amount.
Freelancers or self-employed:
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Freelancers often forget that they need to plan to pay their NI Class 4 contributions. This can result in a nasty shock at the end of the year when their accountant sends them their tax calculation. Check current NI rates on the HM Revenue and Customs website.
As a general rule decisions on National Insurance status should be consistent with decisions on tax status. So, if you're self-employed you will probably be in Schedule D for tax and Class 2 or 4 for NI. If you are in Pay As You Earn (PAYE) for tax you will probably be in Class 1 for NI.
For further advice see the HM Revenue and Customs guide ‘Your National Insurance Number' or contact your local tax office. BECTU members can also obtain information from their Research Office.
