What are National Insurance contributions?

Class 1

Paid by people who work as employed earners, and their employers.

Class 1A

Paid only by employers who provide certain directors and employees with benefits in kind which are available for private use, for example, cars and fuel.

Class 1B

Paid only by employers who enter into a Pay As You Earn (PAYE) Settlement Agreement (PSA) with HM Revenue & Customs for tax purposes.

Class 2

Paid by people who are self employed.

Class 3

Voluntary contributions paid by people who wish to protect their entitlement to the State Pension and who do not pay enough National Insurance contributions in another class.

Class 4

Normally paid by self-employed people in addition to Class 2. Class 4 contributions do not count towards benefits.