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    I received my first payslip today. I noticed that about 10% of my wages went for national insurance? I read about it online and apparently it's to fund pensions, NHS etc. I thought that was the purpose of income tax? So, we pay national insurance and then income tax on top of it? I'm a bit frustrated as I'm making less money than I thought now.
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    (Original post by Anonymous)
    I received my first payslip today. I noticed that about 10% of my wages went for national insurance? I read about it online and apparently it's to fund pensions, NHS etc. I thought that was the purpose of income tax? So, we pay national insurance and then income tax on top of it? I'm a bit frustrated as I'm making less money than I thought now.
    National Insurance ensures that the welfare system will be able to support you if you ever find yourself out of work or long-term ill or disabled. It's great.
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    https://www.gov.uk/national-insurance/overview
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    (Original post by mscaffrey)
    National Insurance ensures that the welfare system will be able to support you if you ever find yourself out of work or long-term ill or disabled. It's great.
    Yes, but the truth is its just another tax, but they called it National Insurance to make it more palatable to the public.
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    National Insurance is just another income tax by a different name - with a few very nasty strings attached.

    Those strings mean it's one of the most evil taxes ever invented - but because so many people think it pays for the NHS & pensions (which it doesn't) it tends to be accepted.
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    I just don't understand why they'd have this on top of income tax. The worst part is that it's a flat rate, so it screws me as I'm on a grad salary. We really are taxed through the teeth in this country...
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    It's just a flashy name given so that people assume it pays for things like the NHS, their pension, benefits should they ever need to claim them etc. In reality, though, it just lines the pockets of the government.
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    It's just another tax. It used to be flat once you earned more than a certain amount, but had a ceiling amount to earnings as well. Now you pay 12% if you earn more than a certain amount (£155/wk), and once you get to the 'ceiling' (£815/wk) you pay 2% on earning above the ceiling.

    There are some benefits that you don't get unless you have paid sufficient NI though - like contribution-based JSA.
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    how on earth are you in your 20s and didn't realise national insurance was a thing? or properly work out your taxes before taking a job?
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    (Original post by Anonymous)
    I just don't understand why they'd have this on top of income tax. The worst part is that it's a flat rate, so it screws me as I'm on a grad salary. We really are taxed through the teeth in this country...
    You may think that but the overall burden of individual taxation in this country is favourable compared to many others especially in Europe.
    https://en.wikipedia.org/wiki/Tax_rates_of_Europe

    Dont forget we have an NHS totally free at point of use. Thats why so many people want to come here and use it without paying.
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    (Original post by cheshiremum)
    It's just another tax. It used to be flat once you earned more than a certain amount, but had a ceiling amount to earnings as well. Now you pay 12% if you earn more than a certain amount (£155/wk), and once you get to the 'ceiling' (£815/wk) you pay 2% on earning above the ceiling.

    There are some benefits that you don't get unless you have paid sufficient NI though - like contribution-based JSA.
    Lol so much this


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