UK National Insurance Rates and Bands (2026/27)
UK National Insurance 2026/27: employee 8% then 2%, employer 15% above £5,000, and the self-employed Class 2 and Class 4 rates.
National Insurance is charged on earnings and profits alongside Income Tax, and the contributions build entitlement to the State Pension and some benefits. Four classes apply: Class 1 (employees and employers), Class 2 (voluntary for the self-employed below the Small Profits Threshold), Class 3 (voluntary fill-in) and Class 4 (self-employed profits, which does not count towards benefits). In April 2025 the employer rate rose from 13.8% to 15% and the Secondary Threshold was cut from £9,100 to £5,000, while the Employment Allowance rose to £10,500.
Class 1 (employees)
| Earnings band | Employee rate | Employer rate |
|---|---|---|
| £0 - £5,000 | 0% | 0% |
| £5,001 - £6,708 | 0% | 15% |
| £6,708 - £12,570 | 0% (counts towards a qualifying year) | 15% |
| £12,571 - £50,270 | 8% | 15% |
| Above £50,270 | 2% | 15% |
Class 4 (self-employed)
| Profits band | Class 4 rate |
|---|---|
| £0 - £12,570 | 0% |
| £12,571 - £50,270 | 6% |
| Above £50,270 | 2% |
Class 2 and Class 3 (voluntary)
- Class 2: £3.65/week (£189.80/year) - voluntary for self-employed below Small Profits Threshold £7,105. Pays for State Pension qualifying year credit. From April 2024 not compulsory above SPT.
- Class 3: £18.40/week (£956.80/year) - voluntary fill-in for State Pension gap years. You can usually pay for the past 6 tax years, at the current rate except for the previous 2 years. Each year buys about £359/yr of extra State Pension.
- Class 3 payback: about 2.7 years of drawing State Pension (£956.80 cost against about £359 a year of extra pension).
April 2025 changes to employer NI
| Component | Pre-April-2025 | From April 2025 | Change |
|---|---|---|---|
| Employer NI rate | 13.8% | 15% | +1.2pp |
| Secondary Threshold | £9,100 | £5,000 | -£4,100 |
| Employment Allowance | £5,000 | £10,500 | +£5,500 |
| Employee NI main rate | 8% | 8% | unchanged |
| Employee NI upper rate | 2% | 2% | unchanged |
Employer NI went up for every employee paid above £5,000. The larger Employment Allowance offsets part of that for employers who can claim it - not a company whose sole director is its only employee liable for employer NI. Employee NI rates were unchanged.
5 worked NI scenarios for 2026/27
Annual-basis figures for one employee on category letter A. Monthly or weekly payroll can differ by a few pence to pounds because each period has its own thresholds.
| Salary | Employee NI | Effective EE rate | Employer NI | Total NI cost |
|---|---|---|---|---|
| £15,000 (Just above the PT) | £194 | 1.3% | £1,500 | £1,694 |
| £25,000 (Basic rate) | £994 | 4.0% | £3,000 | £3,994 |
| £40,000 (Basic rate) | £2,194 | 5.5% | £5,250 | £7,444 |
| £60,000 (Above the UEL) | £3,211 | 5.4% | £8,250 | £11,461 |
| £100,000 (Above the UEL) | £4,011 | 4.0% | £14,250 | £18,261 |
Combined IT + NI marginal rates
Employee in England, Wales or Northern Ireland with the standard Personal Allowance; excludes student loans and the High Income Child Benefit Charge.
| Earnings band | IT | EE NI | Combined |
|---|---|---|---|
| Up to £12,570 | 0% | 0% | 0% |
| £12,571 - £50,270 | 20% | 8% | 28% |
| £50,271 - £100,000 | 40% | 2% | 42% |
| £100,001 - £125,140 | 60%* | 2% | 62% |
| Above £125,140 | 45% | 2% | 47% |
* The 60% effective IT rate in £100k-£125,140 comes from PA taper (40% direct IT + 20% indirect via PA withdrawal). See our Personal Allowance guide for the taper mechanics.
Related
- UK salary take-home calculator
- Self-employed tax calculator (Class 2/4 detail)
- State Pension calculator + qualifying years
- Personal Allowance £12,570 guide
- Higher-rate tax 40% guide
- £100k tax trap (62% combined zone)
- Optimum director salary 2026/27 (LEL + EA strategy)
- Voluntary NI Class 3 contributions guide
- Bonus tax + NI 2026/27 worked examples
Frequently asked questions
What are the UK NI rates for 2026/27?
Four classes of NI in 2026/27. Class 1 (employees): 8% on earnings £12,570-£50,270, 2% above £50,270. Class 1 (employer): 15% on earnings above the £5,000 Secondary Threshold (rate raised from 13.8% and threshold cut from £9,100 in April 2025). Class 2 (self-employed voluntary): £3.65/week (£189.80/year) for those below Small Profits Threshold £7,105 who want State Pension qualifying year. Class 3 (voluntary fill-in): £18.40/week (£956.80/year) to fill State Pension gap years. Class 4 (self-employed profits): 6% on profits £12,570-£50,270, 2% above. The Primary Threshold, Upper Earnings Limit and the Class 4 profit limits stay frozen until April 2031.
What changed for NI in April 2025?
Three employer-side changes took effect on 6 April 2025 (announced at the Autumn Budget 2024). (1) Employer NI rate raised 13.8% → 15% on earnings above the Secondary Threshold. (2) Secondary Threshold cut £9,100 → £5,000, so employer NI starts on a larger slice of every salary. (3) Employment Allowance raised £5,000 → £10,500, and the rule that only employers with under £100,000 of employer NI in the previous year could claim it was removed. A company whose only director is also its only employee liable for employer NI still cannot claim it. Employee Class 1 rates were unchanged at 8% / 2%.
What is the Personal Threshold / Primary Threshold?
The Class 1 Primary Threshold (PT) for employees equals the Income Tax Personal Allowance, £12,570 a year - the first £12,570 of annual earnings is NI-free for employees (HMRC also publishes weekly and monthly equivalents). Self-employed Class 4 NI uses the same £12,570 Lower Profits Limit. Both stay frozen until April 2031. Above the PT, employee NI is 8% up to the Upper Earnings Limit (£50,270), which coincides with the higher-rate Income Tax threshold for someone with the standard Personal Allowance; above it the rate drops to 2%. The PT-UEL band (£37,700) is the same width as the basic-rate Income Tax band.
Why did employee NI drop to 8%?
Two cuts in 2024. 6 January 2024: the Class 1 employee main rate fell from 12% to 10% (announced at the Autumn Statement 2023). 6 April 2024: 10% → 8% (Spring Budget 2024). The Class 4 main rate stayed at 9% for all of 2023/24 and fell to 6% from 6 April 2024. The 2% upper rate (above the UEL) was unchanged throughout. The Autumn Budget 2024 left the employee and Class 4 rates alone and raised the employer rate to 15% from April 2025.
What is the Lower Earnings Limit (LEL) and why does it matter?
LEL £6,708 for 2026/27 is the threshold at which earnings start to count for State Pension QUALIFYING YEAR purposes, even though no actual NI is paid until the Primary Threshold £12,570. It matters for part-time workers and for company directors setting a salary. Earnings between £6,708 and £12,570 cost the employee no NI but still count towards a qualifying year for the State Pension - 35 qualifying years gives the full new State Pension if your record started after April 2016. That is why many directors take a salary in this range: no employee NI, but the year counts. Employer NI is a separate question - it is due at 15% above £5,000 unless the company can claim the Employment Allowance, which a company whose sole director is its only employee liable for employer NI cannot. Salaries BELOW the LEL don't count - causing State Pension gaps that cost about £359/year of entitlement per missing year (1/35 of the full new State Pension of £241.30/week). See our optimum director salary 2026/27 for the full director-pay decision.
What is Class 3 voluntary NI and is it worth buying?
Class 3 NI at £18.40/week (£956.80/year for 2026/27) is voluntary contributions to fill State Pension qualifying year GAPS. Use case: years where you did not pay enough NI (Class 1 below the LEL, self-employed below the Class 2 SPT, unpaid carers without credits, some people abroad - for time abroad after 5 April 2026 you need 10 years of UK residence or contributions to qualify). You can usually pay for the past 6 tax years, with a 5 April deadline each year: gov.uk gives 5 April 2032 as the deadline for 2025/26. You usually pay the current year's rate; only the previous 2 tax years of Class 3 are charged at their original rates. Payback math: each Class 3 year buys about £359/year of additional State Pension (1/35 of £241.30/week × 52). At £956.80 cost per year purchased, the payback period is about 2.7 years of drawing State Pension. Check your State Pension forecast before buying: if you were contracted out before 2016 you will usually need more than 35 qualifying years for the full rate, and if your forecast already shows the full rate, or you expect to reach it through future employment, a further year adds nothing.
How does Class 4 NI differ from Class 1?
Class 4 applies to self-employed PROFITS, Class 1 applies to employee EARNINGS. Rates: Class 4 main rate 6% vs Class 1 main rate 8% - self-employed pay less NI than employees at the same income level in the main band. Class 4 upper rate 2% same as Class 1 upper rate 2%. Thresholds: same £12,570 Lower Profits Limit and £50,270 Upper Profits Limit. Class 2 interaction: from April 2024, Class 2 is no longer compulsory above SPT (£7,105) - self-employed above SPT automatically get the State Pension credit without paying Class 2. Class 2 voluntary at £3.65/wk remains available for those below SPT who want the State Pension qualifying year. Paid via SA: Class 4 NI is calculated and paid through Self Assessment alongside Income Tax, not deducted at source. Worked example: £30,000 of self-employed profit pays £1,046 Class 4 NI vs £1,394 employee Class 1 on the same annual pay (annual basis).
What is the Employment Allowance for employers?
Up to £10,500 a year off the employer's Class 1 NI bill (raised from £5,000 in April 2025). From 2025/26 there is no longer a cap on the previous year's employer NI liability. You cannot claim if your company has just one director and that director is the only employee liable for employer Class 1 NI, or if you are a public body or do more than half your work in the public sector (charities excepted). Domestic staff (other than care or support workers) and workers inside IR35 cannot be included. It is set against employer NI each time you run payroll until it is used up or the tax year ends. Example: 10 employees each on £30,000 cost £37,500 in employer NI; the allowance covers the first £10,500, leaving £27,000 to pay.
How does NI interact with Income Tax?
NI is calculated independently of Income Tax, on earnings rather than taxable income, with its own thresholds. For an employee outside Scotland with the standard Personal Allowance: below the £12,570 Primary Threshold, no NI. Between £12,570 and £50,270, employee NI 8% stacks on Income Tax at 20% = 28% combined. Above £50,270, NI drops to 2% but Income Tax rises to 40% = 42%. Between £100,000 and £125,140 the Personal Allowance taper makes the Income Tax rate 60%, so 62% combined - more than the 47% above £125,140. Self-employed: Class 4 6% + 20% = 26% in the basic band, then the same 42% and 62% as employees. Student loan repayments and the High Income Child Benefit Charge can push the marginal rate higher.
Do directors pay NI differently from employees?
Yes - directors have "annual earnings basis" NI calculation, not the monthly basis applied to employees. NI is calculated on TOTAL annual earnings rather than month-by-month. The thresholds apply once per year, not 12 times. Implication for directors paid irregular salary: for an ordinary employee, a large one-off payment is charged against that month's own thresholds, so most of it falls above the monthly Upper Earnings Limit at 2%; a director's NI is the same whether the year's pay arrives in one month or twelve. HMRC's CA44 booklet allows directors' NI to be paid on account through the year on the normal pay intervals, with the final payment of the tax year reassessed on the annual basis.
How are bonuses treated for NI?
Bonuses are earnings for NI - the same Class 1 rules apply. For an employee who is not a director, NI is worked out on the pay period the bonus is paid in: that period's pay up to the period's Upper Earnings Limit (£4,189 for a monthly payroll) is charged at 8%, and the rest at 2%. Employer NI is 15% on the whole bonus for anyone whose pay already exceeds the Secondary Threshold. Sacrificing a bonus into a pension before it is paid saves the employee's NI on it, and the employer's 15% too, which some employers pass on. See our bonus tax 2026/27 worked examples.
How do I check my NI record and State Pension forecast?
Free online: check your National Insurance record at gov.uk/check-national-insurance-record and your State Pension forecast at gov.uk/check-state-pension. The forecast shows the years already counted, how many more you need, the weekly amount you are on course for and any gaps. A gap year can usually be filled with Class 3 voluntary contributions (£956.80 for a full year at the 2026/27 rate) within the 6-year window. You usually pay the current rate, not the rate for the missed year - only Class 3 for the previous 2 tax years is charged at its original rate - so filling a recent gap sooner can be cheaper.