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    National Insurance (NICs) Guide 2026/27 | UK Tax Hero
    Personal Tax · 2026/27

    National Insurance
    contributions.

    National Insurance funds your State Pension and contributory benefits. Class 1 for employees at 8%, Class 4 for the self-employed, the 15% employer rate and how to fill gaps — explained with worked examples.

    Read the guide → Find an expert
    ✓ Verified 2026/27✓ HMRC sources✓ Free calculators

    National Insurance

    🧾 2026/27
    Employee main rate8%
    Above £967/wk2%
    Employer rate15%
    Full State Pension£241.30/wk
    Verified figuresUpdated May 2026
    Specialists online
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    Class 1, 2 & 4
    Worked examples
    HMRC verified
    £0 to use
    Key 2026/27 figures

    The numbers that matter.

    8%
    Employee Class 1 main rate
    15%
    Employer National Insurance rate
    35 yrs
    For the full new State Pension
    £241.30
    Full new State Pension per week
    Complete guide

    National Insurance for 2026/27

    The rates and thresholds for employees, the self-employed and employers, how NICs build your State Pension, and how to fill gaps — with worked examples and the exact HMRC tools to use.

    What National Insurance pays for

    National Insurance contributions (NICs) fund the State Pension and contributory benefits such as Maternity Allowance and contribution-based Jobseeker’s Allowance. Unlike Income Tax, NICs stop once you reach State Pension age — so pension income is never subject to National Insurance. You need 35 qualifying years for the full new State Pension (£241.30 a week in 2026/27) and at least 10 years for any State Pension at all.

    Class 1 — employees

    Earnings (2026/27)Employee rate
    Up to £242/week (£12,570/yr)0%
    £242 – £967/week8%
    Over £967/week (£50,270/yr)2%
    Worked example

    Employee earning £40,000

    Earnings in the 8% band (£40,000 − £12,570)£27,430
    Class 1 NICs at 8%£2,194.40
    Annual National Insurance£2,194

    Your employer also pays 15% employer NICs on your earnings above £96/week (£5,000/year), a rate that rose in April 2025. Model any salary with the National Insurance calculator.

    Class 4 and Class 2 — the self-employed

    Self-employed people pay Class 4 NICs through Self Assessment: 8% on profits between £12,570 and £50,270, then 2% above. Class 2 NICs were folded into the system from April 2024, so most self-employed people no longer pay a separate flat weekly charge but still build State Pension entitlement.

    Worked example

    Self-employed profit of £30,000

    Profit in the 8% band (£30,000 − £12,570)£17,430
    Class 4 NICs at 8%£1,394.40
    Class 4 for the year£1,394

    Class 4 is paid alongside Income Tax via the SA100/SA103 by 31 January. The Self Assessment calculator includes it.

    Filling gaps in your record

    If you have years where you didn’t work, earned below the threshold, or lived abroad, you may have gaps that reduce your State Pension. You can usually pay voluntary Class 3 contributions (around £17.45 a week for 2026/27) to fill gaps, normally up to six years back.

    📋 Check your record first

    View your National Insurance record and a State Pension forecast in your Personal Tax Account. Only top up gaps that actually increase your pension — the Check your State Pension forecast tool shows the effect before you pay.

    Directors and the salary–dividend question

    Company directors pay Class 1 NICs on salary, but dividends carry no National Insurance. That’s why many owner-managers take a modest salary (often around the £12,570 Personal Allowance) topped up with dividends. With dividend tax rates having risen in April 2026, the optimal split has narrowed — model it with our Director Salary calculator and read the savings & dividends guide.

    🔗 Official sources

    HMRC rates and thresholds: gov.uk/national-insurance-rates-letters. State Pension: gov.uk/new-state-pension.

    Free tools

    Calculate it in seconds.

    No sign-up. Updated for 2026/27. Pair these with the guide above.

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    Common questions

    National Insurance FAQs

    Class 1, 2 and 4 NICs, State Pension entitlement and filling gaps — answered.

    What are the National Insurance rates for 2026/27?
    Employees pay 8% on earnings between £242 and £967 a week, then 2% above. The self-employed pay Class 4 at 8% on profits between £12,570 and £50,270, then 2%. Employers pay 15%.
    Do I pay National Insurance after State Pension age?
    No. NICs stop at State Pension age, even if you keep working. You may need to show your employer proof of age to stop deductions.
    How many qualifying years do I need for the full State Pension?
    35 qualifying years for the full new State Pension. You need at least 10 years for any State Pension.
    How much is the full new State Pension?
    £241.30 a week in 2026/27, after a 4.8% triple-lock rise.
    What is the difference between Class 1, 2 and 4?
    Class 1 is for employees (via PAYE). Class 4 is for the self-employed (via Self Assessment). Class 2 was a flat self-employed charge now folded into the system from April 2024.
    Can I fill gaps in my National Insurance record?
    Yes — voluntary Class 3 contributions (about £17.45/week for 2026/27) can fill gaps, normally up to six years back. Check the effect on your forecast first.
    How do I check my National Insurance record?
    Use the "Check your National Insurance record" service in your Personal Tax Account on GOV.UK. It shows qualifying years, gaps and a State Pension forecast.
    What is the employer National Insurance rate?
    15% on earnings above the £96/week (£5,000/year) secondary threshold, after the rate rose in April 2025.
    Do directors pay National Insurance?
    Yes, on salary via Class 1. Dividends are free of NICs, which is why directors often combine a small salary with dividends.
    Is National Insurance the same across the UK?
    Yes. NICs are UK-wide, so Scottish taxpayers pay the same NIC rates even though their Income Tax rates differ.
    What is the Employment Allowance?
    A relief letting eligible employers reduce their annual employer NICs bill, currently up to £5,000. It does not apply to most single-director companies.
    Do I pay NICs on pension income?
    No. Neither the State Pension nor private pension income attracts National Insurance.
    Do I pay NICs on dividends or savings interest?
    No. National Insurance applies to earnings from work, not investment income such as dividends or interest.
    What is the upper earnings limit?
    £967 a week (£50,270 a year). Employee NICs drop from 8% to 2% above this point.
    Can I get National Insurance credits?
    Yes — credits may apply for periods of unemployment, illness, caring or claiming Child Benefit for a child under 12, protecting your State Pension.
    What happens if I have two jobs?
    Each employer deducts Class 1 NICs separately. If you overpay across jobs, you can apply to HMRC for a refund after year-end.
    How do the self-employed pay NICs?
    Class 4 (and any Class 2) is calculated on your Self Assessment return and paid with your Income Tax by 31 January.
    What is a National Insurance number?
    A unique reference for your contributions record, issued before age 16 or when you start work. You keep the same number for life.
    Will paying voluntary contributions always increase my pension?
    Not always — if you already have 35 qualifying years, extra contributions won’t raise the new State Pension. Always check your forecast before paying.
    How is Class 4 National Insurance calculated?
    8% on self-employed profits between £12,570 and £50,270, then 2% above £50,270, calculated automatically on your Self Assessment return.
    Does salary sacrifice reduce National Insurance?
    Yes — pension salary sacrifice reduces your gross salary, cutting both employee NICs (and Income Tax) and employer NICs.
    What is the secondary threshold?
    The point above which employers start paying NICs — £96/week (£5,000/year) for 2026/27.
    Do students pay National Insurance?
    Yes, if their earnings exceed the primary threshold. There’s no general student exemption, though many earn below the threshold.
    Can I pay NICs while living abroad?
    You may be able to pay voluntary Class 2 or Class 3 to protect your State Pension while abroad, depending on your situation and any social security agreement.
    How do I claim a National Insurance refund?
    If you overpaid (for example across multiple jobs), apply to HMRC after the tax year with details of your earnings; refunds are issued if you exceeded the annual maximum.
    Where can I find official National Insurance rates?
    See gov.uk/national-insurance-rates-letters for current rates, thresholds and category letters.
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    UK Tax Hero provides general tax guidance and a free expert-matching service for the 2026/27 tax year. It is not personal tax, legal or financial advice. Figures are based on published HMRC rates and may change. Always confirm details on GOV.UK or with a qualified professional before acting.