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I am a Tier- General visa holder, and I am working in UK as a contractor but I am under an Umbrella (not under my own limited). The Umbrella is deducting NIC every month. My question is, given the fact that there is no guarantee I would get an extension or settling down, then why do I have to pay NI? Do all of us Tier-1 visa holders pay NIC? Is there any way to avoid this (legally ofcourse)?

(Because it is quite likely that I won’t be getting even a penny’s benefit from my NIC contribution. Moreover, it is mentioned on my visa “No recourse to public fundsâ€

Of course you have to pay and you definitely do get the benefit for what you are paying. The NHS is also funded out of NI contributions.

Everyone who works has to pay NIC if their income is above the NIC minimum threshold. You need to google National Insurance Contributions \(Wiki is a good place to start) to understand and appreciate why you are paying this and for what purpose.