National Insurance Guide 2026/27

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 approx

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

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 i

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

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

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