National Insurance · UK guide · Updated August 2026
National Insurance rates, thresholds and classes for 2026/27.
Written by Iftikhar Rashid FCCA. Figures checked against current GOV.UK guidance.
What is National Insurance?
National Insurance (NI) depends on your employment status and earnings or profits. Employees normally pay Class 1 through PAYE, employers pay a separate Class 1 contribution, and self-employed people may pay Class 4 through Self Assessment. The figures below are the standard 2026/27 rates. Category letters, multiple jobs and director payroll can change the calculation. Source: GOV.UK National Insurance rates and allowances.
National Insurance classes
| Class | Who pays | Rate | Based on |
|---|---|---|---|
| Class 1 (Employee) | Employees | 8% to £50,270 / 2% above | Earnings above £12,570 Primary Threshold |
| Class 1 (Employer) | Employers | 15% | Employee earnings above £5,000 Secondary Threshold |
| Class 4 | Self-employed (sole traders, partners) | 6% to £50,270 / 2% above | Profits above £12,570 Lower Profits Limit |
| Class 2 | Self-employed | Not charged automatically; voluntary rate £3.65 a week | Some people can choose to pay it to protect benefit entitlement |
Source: GOV.UK National Insurance rates and allowances, checked 7 August 2026.
Where can you estimate National Insurance?
A guide cannot replace a payroll calculation. Use our salary calculator for a standard take-home estimate including employee NI, or our Self Assessment calculator for an estimate that includes Class 4 NI on self-employed profit. For an employee or payroll calculation with a pay period and NI category letter, use HMRC's current-year calculator.
FAQs
What is National Insurance?
National Insurance (NI) is paid by employees, employers and some self-employed people. The class, rate and threshold depend on employment status, earnings or profits. Class 1 applies to employment, while Class 4 applies to most self-employed profits. NI contributions can help build entitlement to the State Pension and certain contributory benefits.
What are the National Insurance rates in 2026/27?
For most employees, Class 1 NI is 8% on earnings between £12,570 and £50,270 and 2% above £50,270. Employer Class 1 NI is normally 15% on earnings above the £5,000 Secondary Threshold. Self-employed Class 4 NI is 6% on profits between £12,570 and £50,270 and 2% above that. Class 2 is not charged automatically, but some self-employed people can choose to pay it voluntarily.
How does National Insurance affect limited company directors?
Directors who take salary from their company pay Class 1 employee NI on salary above the Primary Threshold. The company pays employer Class 1 NI on salary above the Secondary Threshold. Dividends do not attract NI for either party — which is why the salary-plus-dividends strategy is tax-efficient for directors. Setting salary at or just below the NI threshold eliminates NI while still building the State Pension record.
What is the Employment Allowance?
The Employment Allowance reduces an employer's Class 1 NI liability by up to £10,500 per tax year. It is available to most businesses and charities but not to single-director companies where the director is the only employee. If an eligible company has additional employees, the Employment Allowance can be claimed — and changes the optimal salary calculation for director remuneration.
Do National Insurance contributions qualify you for the State Pension?
National Insurance contributions or credits can count towards qualifying years for the State Pension. Whether a particular year counts depends on your earnings, profits, credits and record. Check your State Pension forecast and National Insurance record before deciding whether to make voluntary contributions.
Questions about NI and your business?
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