NATIONAL INSURANCE CONTRIBUTIONS 2021/22.

Preface
Contents
Table of Examples
Table of Statutes
Table of Statutory Instruments
Table of HMRC Guidance, etc
Table of EC Material
Table of Cases
List of Abbreviations
1. Overview of the National Insurance system
	Signposts
	Introduction
	Administration
	Classes of National Insurance contributions
	National Insurance contributions and benefit entitlement
	National Insurance disclosure scheme
	General anti-abuse rule (GAAR)
	Planning points
2. Categorisation of Earners
	Signposts
	Importance of categorisation
	Determining status
	Special cases
	Recategorisation
	Planning points
3. Class 1 National Insurance contributions
	Signposts
	Overview of Class 1 National Insurance contributions
	Employment allowance
	Coronavirus Job Retention Scheme
	Earnings
	Earnings periods
	Aggregation of earnings
	Annual maximum and deferment
	Contracting out
	Calculating Class 1 National Insurance contributions
	Salary sacrifice arrangements
	Collecting and recording Class 1 National Insurance contributions
	Planning points
4. Class 1A National Insurance contributions
	Signposts
	Overview of Class 1A National Insurance contributions
	Liability to Class 1A National Insurance contributions
	Exclusions from the Class 1A charge
	Effect of method of providing benefits on liability
	Employees abroad
	Calculating the Class 1A charge
	Benefits provided by a third party
	Collection of Class 1A National Insurance contributions
	Record keeping
	Planning points
5. Class 1B National Insurance contributions
	Signposts
	Overview of Class 1B National Insurance contributions
	PAYE settlement agreements
	Exclusions from the Class 1B charge
	Calculating Class 1B contributions
	Collection and reporting
	Timing considerations
	Records
	Planning points
6. Class 2 National Insurance contributions
	Signposts
	Overview of Class 2 National Insurance contributions
	Exceptions from the liability to Class 2 National Insurance
contributions
	Voluntary payment of Class 2 National Insurance contributions
	Special Class 2 National Insurance contributions
	Annual maximum
	Payment and collection of Class 2 National Insurance
contributions
	Covid-19 pandemic
	Planning points
7. Class 3 and Class 3A National Insurance contributions
	Signposts
	Overview of Class 3 National Insurance contributions
	Eligibility to pay Class 3 National Insurance contributions
	Additional Class 3 National Insurance contributions
	Decision to pay Class 3 National Insurance contributions
	Notification requirements
	Payment of Class 3 National Insurance contributions
	Class 3A National Insurance Contributions
	Planning points
8. Class 4 National Insurance contributions
	Signposts
	Overview of Class 4 National Insurance contributions
	Exception from liability to Class 4 National Insurance
contributions
	Profits for Class 4 National Insurance purposes
	Calculating the Class 4 National Insurance liability
	Annual maximum
	Payment and collection of Class 4 National Insurance
contributions
	Special Class 4 National Insurance contributions
	Covid-19 pandemic
	Planning points
9. International considerations
	Signposts
	Overview of international considerations
	Key concepts
	Residence and presence condition for liability
	Going to and coming from abroad: UK position
	EU countries, other EEA countries and Switzerland
	Reciprocal agreement countries
	Rest of the world
	Mariners
	Embassy employees
	Direct payment scheme
	Modified National Insurance contribution procedures
	Offshore intermediaries
	Planning Points
Appendices
	Appendix 1 Class 1 NIC rates and thresholds
	Appendix 2 Class 1A NIC rates
	Appendix 3 Class 1B NIC rates
	Appendix 4 Class 2 NIC rates
	Appendix 5 Class 3 NIC rates
	Appendix 6 Class 3A Voluntary NIC rates
	Appendix 7 Class 4 NIC rates
Index