Introduction and tax tables
You'll learn what National Insurance is, who pays it, and how it's structured across employment and self-employment. This introduction covers the five classes of National Insurance, the key rates you need to know (8% and 2% for employees, 15% for employers, 6% and 2% for self-employed), and how to approach National
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In this lesson
- 0:00 Introduction to National Insurance
- 0:22 What is National Insurance and its purpose
- 1:04 National Insurance classes and age requirements
- 1:26 Employment National Insurance contributions
- 1:54 Self-employed National Insurance contributions
- 2:07 National Insurance rates and allowances
About this lesson
Insurance questions in the tax exam. Understanding these fundamentals is essential for tackling National Insurance calculations and scenarios in TX and ATX papers. This lesson sets out the foundation for National Insurance by explaining that it's a tax on employment earnings and self-employed profits, paid into a fund that supports state benefits like pensions, sick pay, and maternity leave. You'll discover which classes apply to employees, employers, and self-employed individuals, and the age thresholds that determine liability. The video also introduces the tax tables you'll use throughout your studies, so you can start recognising the standard rates and allowances that appear in exam questions.
Duration: 2m
Transcript
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