Spire Accountants

National Insurance (NI) contributions are a tax on earnings and self-employed  profits paid by:

1. employees;
2. employers and
3.  the self-employed.  

They can help to build your entitlement to certain state benefits depending  whether you are employed or self-employed. Your entitlement is also known as your national insurance or NI record.

Benefits which depend on your NI record include:

• Maternity Allowance -  a weekly payment for some women who are pregnant or have recently given birth;
• Contribution-based/New Style Jobseeker's Allowance (JSA) - can be claimed by the unemployed for up to 6 months;
• Contribution-based/New Style Employment and Support Allowance (ESA) - can be claimed if you have a low income job;
• Bereavement Benefits - can be claimed if your husband, wife or civil partner die before you have reached the state pension age;
• Basic State Pension- can be claimed if you reached state pension age on or before 5th April 2016 and 
• New State Pension- can be claimed if you reached state pension on or after 6th April 2016.

Benefits which do not depend on your NI record include:

• Attendance Allowance - can be claimed by those who have reached pension age and have care needs;
• Disability Living Allowance (DLA) - can be claimed by those who have extra care needs or mobility needs (difficulty getting around) as a result of a disability;
• Personal Independence Payment (PIP) - replaced DLA an can be claimed by those aged under pension age who  have extra care needs;
• Child Benefit - can be claimed by a parent brining up a child;
• Guardian's Allowance - can be claimed by a person who is looking after a child who is not their own;
• Universal Credit - can be claimed by people who are at a working age and on low incomes and
• Carer's Allowance - can be  claimed by people who spend at least 35 hours a week providing regular care to someone who has a disability.