National Insurance
National Insurance Contributions (NICs) are paid so that you can build up your entitlement to social benefits like a pension. The type and level of NIC depends on how much you earn. You will start paying NIC when you:
are over the age of 16;
have a job and;
are earning over a certain level.
You are given a national insurance number (NI). This is your own personal account number and it’ll make sure that all the tax you pay is properly recorded on your account.
National insurance rates for 2007/08
If you’re employed and;
you earn between £100 and £670 a week you’ll pay 11 per cent of this amount as NICs
you’ll also pay 1 per cent of earnings above £670 a week as NICs
you will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme