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National Insurance Contributions — Rates

Class 1 — Employee and employer

Earnings 2026/27 2025/26
Employee Employer Employee Employer
Below Secondary Threshold (ST) Nil Nil Nil Nil
Between ST and Lower Earnings Limit (LEL) Nil 15% Nil 15%
Between LEL and Primary Threshold (PT) 1 0% 15% 0% 15%
Between PT and Upper Earnings Limit (UEL) 2, 3, 4, 5 8% 15% 8% 15%
Above UEL 2% 15% 2% 15%
  1. Although no NICs are payable, to protect an employee’s entitlement to contributory benefits, notional Class 1 NIC are deemed to have been paid on earnings between the LEL and the PT.
  2. Employers are not required to pay Class 1 NIC on earnings up to the Upper Secondary Threshold (UST) for any employee aged under 21. Employers are not required to pay Class 1 NIC on earnings paid up to the Apprentice Upper Secondary Threshold (AUST) to apprentices under the age of 25. As shown in the ‘National Insurance Contributions - Thresholds’ tables, the UST and AUST will be the same as the UEL in 2026/27.
  3. Employer Class 1 NIC relief is available up to the Veteran’s Upper Secondary Threshold (VUST) to those who employ armed forces veterans. Employers are therefore not required to pay Class 1 NIC on earnings for 12 months from the veteran’s first day of civilian employment after leaving the armed services. As shown in the ‘National Insurance Contributions - Thresholds’ tables, the VUST will be the same as the UEL in 2026/27.
  4. Employer Class 1 NIC relief is available for eligible employees working in all Freeports from April 2022 or when a tax site is designated as a Freeport after this date if later. Provided certain conditions are met, for up to 3 years from commencement of employment employers are therefore not required to pay Class 1 NIC on earnings up to the Freeport Upper Secondary Threshold (FUST) until April 2031 within English Freeports and April 2034 within a Scottish Green Freeport, a Welsh Freeport and an Investment Zone special tax site. As shown in the ‘National Insurance Contributions - Thresholds’ tables, the FUST and Investment Zone Upper Secondary Threshold (IZUST) are set at £481 per week, and its monthly and annual equivalents.
  5. Employees over the State Pension Age do not pay Class 1 NIC, but employers are still required to pay Class 1 NIC on their earnings.

Class 1A and Class 1B — Employer

Earnings or benefits 2026/27 2025/26
Class 1A 1
- Most taxable benefits, including car and fuel benefit charges 15% 15%
Class 1B
- Earnings in a PAYE Settlement Agreement and income tax thereon 15% 15%

Class 2 and Class 4 — Self employed

Income or profits 2026/27 2025/26
Class 2 1
- Below Small Profits Threshold (SPT) £3.65 (voluntary) £3.50 (voluntary)
- Between SPT and Lower Profits Threshold (LPT) £0.00 £0.00
- Weekly flat rate above LPT £0.00 £0.00
Class 4 
- Below Lower Profits Limit (LPL) 0% 0%
- Between LPL and Upper Profits Limit (UPL) 6% 6%
- Above UPL 2% 2%
  1. Payment of Class 2 NICs has traditionally been voluntary for those earning below the Small Profits Threshold. From 6 April 2024, those earning above the SPT will not be required to pay Class 2 NICs but will continue to get access to contributory benefits including the State pension via a NIC credit. Those with annual profits below £7,105 and others who pay Class 2 NIC voluntarily will continue to be able to do so.

Class 3 — Voluntary

Contributions 2026/27 2025/26
Class 3
- Weekly flat rate voluntary payment £18.40 £17.75