National Insurance contributions

Question 1

National Insurance Contributions (NIC):

Answer 1

Are paid by self-employed individuals, employees and their employers. The contributions are used to bear part of the liability of the government to pay state benefits such as jobseeker’s allowance and state pensions.

Question 2

State pension age:

Answer 2

The age at which an individual is entitled to receive the basic state pension and
cease paying NICs.

Question 3

Lower profits limit:

Answer 3

No Class 2 contributions are required if the individual’s profits are below the
lower profits limit (£12,570 for 2023/24).