UK National Insurance Contributions (NICs) Bands & Rates 2026
Comprehensive 2026-27 HMRC guide to National Insurance: Class 1 employee and employer rates, Class 1A/1B, Class 2 and Class 4 self-employed contributions, Class 3 voluntary NICs, earnings/profit thresholds, Employment Allowance and State Pension qualifying years.
2026-27 National Insurance Framework
National Insurance Contributions (NICs) are contributions linked to the UK's contributory social-security system. The class and amount depend on employment status, earnings or profits, and in some cases the contributor's category or circumstances. NICs are separate from Income Tax, although both are commonly collected through PAYE or Self Assessment.
2026-27 Class 1 Employee Thresholds and Rates
For most employees using National Insurance category A, the 2026-27 Class 1 employee thresholds are £129/week Lower Earnings Limit, £242/week Primary Threshold and £967/week Upper Earnings Limit. Employee NIC is 8% above the Primary Threshold up to the UEL and 2% above the UEL.
| Band | Weekly Amount | Annual Equivalent | Category A Employee NIC |
|---|---|---|---|
| Below Lower Earnings Limit | Below £129 | Below £6,708 | 0% |
| LEL to Primary Threshold | £129 to £242 | £6,708 to £12,570 | 0%, with benefit/qualifying-year treatment |
| Primary Threshold to UEL | Above £242 to £967 | Above £12,570 to £50,270 | 8% |
| Above UEL | Over £967 | Over £50,270 | 2% |
Class 1 Employer NICs and the Secondary Threshold
For the ordinary Class 1 employer category, the 2026-27 Secondary Threshold is £96/week, £417/month or £5,000/year. Employer NIC is normally 15% above the Secondary Threshold. The £9,100 annual threshold belongs to the period before the 2025 reform and should not be used as the ordinary 2026-27 threshold.
| Employer Threshold | 2026-27 Amount |
|---|---|
| Secondary Threshold | £96/week |
| Secondary Threshold | £417/month |
| Secondary Threshold | £5,000/year |
| Ordinary employer Class 1 rate above threshold | 15% |
Class 1 Category Letters and Special Employer Rates
The standard 8% employee and 15% employer rates apply principally to ordinary category A employees. Other National Insurance category letters can apply to employees such as under-21s, apprentices under 25, veterans, employees with deferment and certain Freeport or Investment Zone employees. The correct category should therefore be used before calculating NIC.
Class 2 National Insurance for Self-Employed People
Compulsory Class 2 NIC liability was abolished from April 2024. For 2026-27, self-employed people with profits of £7,105 or more are treated as having paid Class 2 contributions for benefit purposes and do not actually pay Class 2. Those with profits below £7,105 do not have to pay, but eligible people can choose to pay voluntary Class 2 at £3.65 per week.
| 2026-27 Self-Employed Profit | Class 2 Treatment |
|---|---|
| Below £7,105 | No compulsory payment; voluntary Class 2 may be available at £3.65/week |
| £7,105 or more | Class 2 treated as paid; no actual Class 2 payment |
| Above £12,570 | Class 4 also becomes payable |
Class 4 National Insurance for Self-Employed People
For 2026-27, Class 4 NIC is calculated on self-employed profits. The main rate is 6% on profits over £12,570 up to £50,270, with an additional rate of 2% on profits above £50,270.
| Profit Range | Class 4 Rate |
|---|---|
| Up to £12,570 | 0% |
| Over £12,570 to £50,270 | 6% |
| Over £50,270 | 2% |
Voluntary Class 3 National Insurance
Class 3 is voluntary National Insurance used principally to fill gaps in an individual's NI record for State Pension purposes. The standard Class 3 rate is £18.40 per week in 2026-27. Class 3 is fundamentally different from Class 2: Class 2 can link to several contributory benefits, while Class 3 principally builds State Pension entitlement.
| Voluntary Class | 2026-27 Rate | Main Purpose |
|---|---|---|
| Class 2 | £3.65/week | Contributory benefits and State Pension where voluntary Class 2 is available |
| Class 3 | £18.40/week | Primarily State Pension entitlement |
National Insurance and State Pension Qualifying Years
Employees can build a qualifying year without actually paying employee NIC in certain earnings bands. For 2026-27, an employee earning between £129 and £242 per week from one employer is treated as having paid NIC for benefit purposes. This corresponds to the annual LEL of £6,708 and the Primary Threshold of £12,570.
New State Pension: 10-Year Minimum and 35-Year Rule
For the new State Pension, you usually need at least 10 qualifying years on your National Insurance record to receive any pension. For someone whose NI record started after April 2016, 35 qualifying years are generally needed for the full rate. People with pre-2016 records have transitional calculations and can need more than 35 years for the full amount.
| State Pension Rule | 2026-27 Position |
|---|---|
| Minimum normally needed for any new State Pension | 10 qualifying years |
| Full rate for post-April-2016 records | Generally 35 qualifying years |
| Full new State Pension rate 2026-27 | £241.30/week |
| Pre-April-2016 records | Transitional calculation; may need more than 35 years |
Class 1A and Class 1B NIC
Employers can have separate Class 1A and Class 1B NIC liabilities on certain expenses, benefits and PAYE Settlement Agreements. For 2026-27, the relevant rate is generally 15%. These contributions are employer liabilities and are not the same as the employee's Class 1 primary contribution.
Employment Allowance in 2026-27
Eligible employers can use the Employment Allowance to reduce their annual employer Class 1 NIC liability by up to £10,500 in 2026-27. The allowance is not a £5,000 allowance in 2026-27. The previous £100,000 employer-NIC-liability restriction was removed, but normal eligibility restrictions continue to apply.
| Item | 2026-27 Position |
|---|---|
| Maximum Employment Allowance | £10,500 |
| Can it reduce employee NIC? | No |
| Can it reduce employer Class 1 NIC? | Yes, subject to eligibility |
| £100,000 previous-year liability restriction | Removed from 2025-26 onwards |
National Insurance After State Pension Age
Employees normally stop paying primary Class 1 National Insurance once they reach State Pension age. However, employer NIC can continue to be payable on their employment earnings where the employer remains liable. The employee's category letter can change to reflect State Pension age.
Voluntary NICs From Abroad: 2026 Changes
The voluntary National Insurance rules for people living abroad changed from 6 April 2026. The government removed the ability for new overseas contributors to pay voluntary Class 2 from abroad and increased the qualifying UK residence or contribution requirement for voluntary NICs outside the UK to 10 years, subject to transitional arrangements. People with qualifying pre-6-April-2026 arrangements can fall under transitional rules.
National Insurance Is Separate From Income Tax
National Insurance and Income Tax are separate liabilities with different thresholds and calculation systems. Employee NIC can be payable even when the taxpayer's Income Tax calculation is different, and self-employed Class 4 NIC is based on profits rather than taxable income in the same way as Income Tax. A payroll or self-employed calculator should therefore calculate Income Tax and NIC independently.
Practical 2026-27 NIC Calculation Workflow
A reliable NIC calculator should identify employment status and category first, then apply the appropriate weekly/monthly/annual threshold and rate. Self-employed calculations must use profits rather than turnover. Employer calculations must be kept separate from employee deductions, and State Pension entitlement should be assessed from the NI record rather than from a single earnings threshold.