National Insurance Calculator (Class 1 & 4) UK

National Insurance Guide 2026/27

What should I know about Class 1 Employee NI Rates 2026/27?

Employee Class 1 NI (deducted via PAYE): 0% on earnings up to £12,570/year (the Primary Threshold). 10% on earnings between £12,570 and £50,270 (reduced from 12% from January 2024, then further to 10% from April 2024). 2% on earnings above £50,270. Example: salary of £45,000 → NI = 10% × (£45,000 − £12,570) = 10% × £32,430 = £3,243. Key 2024 change: the rate was cut from 12% to 8% (via two staged reductions — to 10% in January 2024, then to 8% in April 2024). This saved a typical employee approximately £450-750 per year, depending on salary.

What do I need to know about Class 4 Self-Employed NI 2026/27?

Self-employed Class 4 NI (paid via Self Assessment): 0% below £12,570. 6% on profits from £12,570 to £50,270 (reduced from 9% from April 2024). 2% above £50,270. Class 2 NI (flat rate, previously £3.45/week) was abolished from April 2024 — self-employed people no longer pay Class 2, only Class 4. State Pension entitlement from Class 4: following the abolition of Class 2, self-employed people now accrue State Pension entitlement through Class 4 contributions — provided their profits are above the

What's the key thing to understand about Employer Class 1 NI?

Employers pay secondary Class 1 NI on employee earnings above the Secondary Threshold (£9,100/year in 2026/27). Rate: 13.8% on all earnings above this threshold — there is no upper limit (unlike employees). An employee paid £30,000: employer NI = 13.8% × (£30,000 − £9,100) = 13.8% × £20,900 = £2,884/year. Employment Allowance: eligible employers can reduce their employer NI by up to £5,000 per year. Not available to single-director companies where the director is the sole employee. Employer NI is a real cost to the business on top of gross salary, which is why total employment cost is always higher than the salary figure alone.

What should I know about NI and State Benefits Entitlement?

NI contributions build entitlement to: State Pension (requires 35 qualifying years for full new State Pension — £221.20/week in 2026/27). Employment and Support Allowance. Maternity Allowance. Bereavement benefits. Check your NI record at gov.uk/check-national-insurance-record. Gaps in NI records can be filled voluntarily for years going back to 2006 (Class 3 voluntary contributions — £17.45/week in 2026/27). This can be extremely cost-effective: paying one year of voluntary contributions costs £907.40 (the Class 3 rate) but can add up to £329/year to the state pension for life — often recovering the cost within 3 years of retirement.