What is NI?
National Insurance (NI) is a UK deduction linked to earnings that helps fund public services and certain state benefits, including the State Pension. Employees usually pay it through payroll, and employers make contributions too.
Self-employed people pay through their tax return.
A worker’s National Insurance number tracks these contributions over time, which can affect what you can claim in the future.
Rules and thresholds change, so employers should check the latest guidance and keep payroll settings up to date.
Things to know
- NI is separate from Income Tax, even though both may be deducted from pay
- Employees and employers usually both pay National Insurance contributions
- Self-employed people normally pay NI through their tax return
- NI deductions are shown on a payslip
- A worker’s National Insurance number helps track their contributions over time
FAQs
What does NI stand for?
NI stands for National Insurance.
What is National Insurance?
It helps fund public services and supports access to certain state benefits, including the State Pension.
Do employers pay National Insurance too?
Yes. Employers usually pay National Insurance contributions as well as deducting employee NI through payroll.
What is a National Insurance number?
It’s a unique reference used to record a worker’s National Insurance contributions and help track them over time.
Why does an employee’s NI deduction change?
It can change if their earnings change, or if NI thresholds and rules are updated.
