National Insurance and Tax
National Insurance
Paying National Insurance contributions and taxes is a nasty but inevitable fact of adult life.
You are given a unique National Insurance (NI) number when you're 16, sent to your home address on a plastic card. It's important to keep it safe as you will need it when you start work or try to claim any kind of benefits. Most people who work have to pay National Insurance contributions and these are taken directly from your wages. The contributions you pay count towards some benefits and also your state pension.
If you are aged between 15 years, 9 months and 20 years old and have not received your National Insurance number, please call the National Insurance registration helpline on 0845 915 7006. If you are older than 20, call Jobcentre Plus on 0845 600 0643.
Southampton Jobcentre Plus
St Cross House
18 Bernard Street
Southampton
Hampshire
United Kingdom
SO14 2HP
Telephone: 0845 604 3719
Textphone: 0845 608 8551
Directgov answers the following questions about National Insurance numbers:
- What is a National Insurance number?
- Where to apply for a National Insurance number
- When you can apply for a National Insurance number?
- Evidence of identity interview
- Types of evidence and information
If you have lost or can't remember your NI number you may be able to find it on official paperwork you have at home such as a payslip or a P60 which is a statement of tax at the end of each financial year. However if you still can't find it, contact your local Job Centre (details on the right) and they'll tell you what to do.
Income Tax
Your NI number never changes, even if you go abroad, marry or change your name.
You will also have to pay Income Tax once you earn over £7,475 per year. This will increase to £8,105 per year from April 2012. The more you earn, the more tax you pay. The money raised through Income Tax helps pay for things like education, hospitals, social security, police and defence. Your employer will work out how much you have to pay and, like National Insurance, take it directly out of your wages.
You won't have to pay tax on student grants and loans, housing benefit or money you receive from your parents. If you earn less than £139 a week then you shouldn't be taxed. If you are a student you shouldn't be taxed if you work during the holidays.
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