What are the UK National Insurance rates for 2025-26?

National Insurance rates for tax year 2025-26 (6 April 2025 – 5 April 2026): Class 1 — Employee contributions: · Below Lower Earnings Limit (£6,396): 0% (no NI, no benefit entitlement) · LEL to Primary Threshold (£6,396–£12,570): 0% (no NI, but builds State Pension record) · Primary Threshold to UEL (£12,570–£50,270): 8% · Above Upper Earnings Limit (£50,270+): 2% Class 1 — Employer contributions (from 6 April 2025): · Below Secondary Threshold (£5,000): 0% · Above £5,000: 15% (Previously: 13.8% above £9,100 — both changed in Autumn Budget 2024) Class 4 — Self-employed: · Below Primary Threshold (£12,570): 0% · PT to UEL (£12,570–£50,270): 6% · Above UEL (£50,270+): 2% (Class 2 NI of £3.45/week was abolished from 6 April 2024) Note: Scotland has devolved income tax rates but uses the same NI thresholds and rates as England, Wales, and Northern Ireland. Example: £35,000 salary Employee NI: (£35,000 − £12,570) × 8% = £1,794/year = £149.50/month Employer NI: (£35,000 − £5,000) × 15% = £4,500/year

What changed in NI from April 2025?

Significant changes to National Insurance took effect from 6 April 2025, announced in the October 2024 Autumn Budget: Employer NI Rate: Before (2024-25): 13.8% From April 2025: 15% (+1.2 percentage points) Employer Secondary Threshold (ST): Before: £9,100/year (£758/month) From April 2025: £5,000/year (£417/month) Effect: Employers start paying NI on salaries above just £5,000, not £9,100 — a massive increase in employer NI costs for many businesses. Employment Allowance: Before: £5,000/year From April 2025: £10,500/year Previous £100K prior-year NI eligibility cap also removed (now available to all qualifying employers) Effect: Partially offsets increased employer NI for smaller businesses. A business with employer NI bill under £10,500 pays nothing. Employee NI — NO CHANGE: Employee rates and thresholds remain the same as 2024-25: · Primary Threshold: £12,570 (same) · UEL: £50,270 (same) · Rates: 8% / 2% (same) Self-employed Class 4 — NO CHANGE: · Rates 6% / 2% remain the same Impact summary: Employees see no change in take-home. Employers face significantly higher NI costs — particularly for part-time and lower-paid workers where the reduced ST makes a big difference.

What is the Primary Threshold and why does it matter?

The Primary Threshold (PT) is the earnings level above which employees start paying National Insurance contributions. 2025-26 Primary Threshold: £12,570/year (£1,047.50/month, £241.73/week) This was deliberately aligned with the Income Tax Personal Allowance (also £12,570) from July 2022 — meaning employees don't start paying either income tax OR NI until earnings exceed £12,570. The LEL-PT gap (£6,396 to £12,570): Employees earning between the Lower Earnings Limit (£6,396) and the Primary Threshold (£12,570) don't pay any NI, but these earnings still count towards: ✓ State Pension entitlement ✓ Employment and Support Allowance ✓ Jobseeker's Allowance ✓ Maternity Allowance ✓ Statutory Sick Pay Practical examples: · Earning £10,000: No NI paid, but builds State Pension record — best of both worlds · Earning £15,000: NI on (£15,000 − £12,570) = £2,430 × 8% = £194/year · Earning £50,270 (UEL): NI on (£50,270 − £12,570) = £37,700 × 8% = £3,016/year Above the UEL (£50,270), the rate drops to 2%, which is why NI is often described as 'regressive' — higher earners pay a lower effective NI rate than middle earners.

Employed vs Self-Employed NI — which is more tax efficient?

Self-employed individuals pay less NI than employees at the same income level — but the comparison is more nuanced than just NI rates. NI comparison at the same income level (2025-26): At £30,000 income: Employee Class 1: (£30,000−£12,570) × 8% = £1,394/year Self-employed Class 4: (£30,000−£12,570) × 6% = £1,046/year Self-employed saves: £348/year in NI At £50,000 income: Employee Class 1: £3,016/year Self-employed Class 4: £2,262/year Self-employed saves: £754/year in NI However, employee benefits to consider: ✓ Employer pension contributions (typically 3-10% of salary) ✓ Employer NI you 'save' the employer — they may share this in higher pay for contractors ✓ Statutory sick pay, maternity/paternity pay ✓ Employment rights (holiday pay, redundancy, etc.) ✓ Company benefits (health insurance, life cover, gym etc.) Self-employed advantages: ✓ Lower NI rates (6% vs 8% in the main band) ✓ Ability to deduct business expenses before calculating profit ✓ Flexible pension contributions (up to 100% of earnings) ✓ Can pay yourself via dividends through a limited company (for higher earners) For higher earners via limited company: Corporation tax on company profits + dividend tax can be significantly more efficient than employment, especially above £50,000. Conclusion: At £30-50K, the NI saving from self-employment (£350-750/year) may be less than the value of employer pension contributions and benefits. At higher incomes (£80K+), a limited company structure can save substantially more.

Do I pay National Insurance on pension contributions and benefits in kind?

National Insurance on employee pension contributions: ✓ Employee pension contributions via salary sacrifice: EXEMPT from NI (both employee and employer NI) ✓ Employee pension contributions not via salary sacrifice: Employee pays NI on the gross salary; employer also pays NI on the gross salary ✓ Employer pension contributions: EXEMPT from employer NI (a major benefit of pension vs salary) Salary sacrifice pension example at £40,000: Standard contribution: NI calculated on full £40,000 Salary sacrifice £5,000 into pension: NI calculated on £35,000 only Employee NI saving: £5,000 × 8% = £400/year Employer NI saving: £5,000 × 15% = £750/year (some employers pass this saving to the employee) Benefits in Kind (company car, private medical, etc.): Most BIKs are NOT subject to NI in the traditional sense — instead, the taxable BIK value is added to the employee's P11D, affecting income tax but not typically NI. Exception: Cash equivalent benefits can attract NI. Other exemptions from NI: ✓ Redundancy pay (first £30,000) ✓ Trivial benefits (under £50, not cash) ✓ Staff canteen meals (available to all) ✓ Approved mileage rates (up to 45p/mile for first 10,000 miles) ✓ Employer childcare (Tax-Free Childcare scheme) ✓ Employer gym/health facilities used on-site

UK NATIONAL INSURANCE CALCULATOR 2025-26

Calculate UK National Insurance contributions for tax year 2025-26 (6 April 2025 – 5 April 2026). Covers Class 1 employee NI (8% between £12,570–£50,270, 2% above), Class 1 employer NI (15% above £5,000 Secondary Threshold — changed from 13.8%/£9,100 in April 2025), and Class 4 self-employed NI (6%/...

NI CALCULATOR

Worker Type

Pay Period

Annual Salary (£)

EMPLOYEE NI (CLASS 1) — ANNUAL

£1,794

PER MONTH

£150

PER WEEK

£35

EFF. RATE

5.13%

Gross Salary£35,000

National Insurance− £1,794

Income Tax− £4,486

Take-Home£28,720

Take-home: £2,393/month · 82.1% of gross

LIVE DIAGRAM

ANNUAL TAKE-HOME

£28,720

£2,393/month · 82.1% of gross

GROSS SALARY SPLIT

Take-home£28,720 (82%)

Income Tax£4,486 (13%)

NI (Class 1)£1,794 (5%)

THRESHOLD STATUS

✓

Lower Earnings Limit: £6,396

Qualifies for benefits, no NI due

✓

Primary Threshold: £12,570

NI at 8% above this

–

Upper Earnings Limit: £50,270

NI drops to 2% above this

2025-26 rates · England, Wales & NI · Approximate

Created with❤️byeaglecalculator.com

NI RATES & THRESHOLDS 2025-26

Category	Threshold	Rate	Notes
Class 1 Employee	Below LEL £6,396	0%	No NI due, no benefit entitlement
Class 1 Employee	LEL–PT (£6,396–£12,570)	0%	No NI due but builds State Pension entitlement
Class 1 Employee	PT–UEL (£12,570–£50,270)	8%	Main rate — most employees pay this
Class 1 Employee	Above UEL (£50,270+)	2%	Reduced rate above Upper Earnings Limit
Class 1 Employer	Below ST £5,000	0%	Secondary Threshold (reduced from £9,100 Apr 2025)
Class 1 Employer	Above ST £5,000	15%	Rate increased from 13.8% from Apr 2025
Class 4 (SE)	Below PT £12,570	0%	No Class 4 below PT
Class 4 (SE)	PT–UEL (£12,570–£50,270)	6%	Reduced from 9% in prior years
Class 4 (SE)	Above UEL £50,270	2%	Same as employee upper rate

Tax year 6 April 2025 – 5 April 2026 · England, Wales & Northern Ireland · Scotland has devolved income tax rates but same NI rates

HOW TO USE

1
Select your worker type: Employed (Class 1 NI at 8% between Primary Threshold and Upper Earnings Limit, 2% above) or Self-Employed (Class 4 NI at 6%/2% — Class 2 was abolished in April 2024). Choose your pay period (Annual, Monthly, or Weekly) and enter your salary or profit.
2
Use the salary presets (£15K to £100K) for quick selection. Results show your annual NI, monthly NI, weekly NI, effective NI rate, income tax, take-home salary, and monthly take-home. The threshold status panel shows whether you're above the Lower Earnings Limit, Primary Threshold, and Upper Earnings Limit.
3
Switch to the Employer NI tab to calculate the employer's Class 1 NI cost at 15% above the £5,000 Secondary Threshold (changed from 13.8% and £9,100 as of 6 April 2025). The Employment Allowance (£10,500/year from Apr 2025) reduces the employer's NI bill for eligible employers.
4
Switch to the Self-Employed NI tab to see Class 4 NI compared directly against Class 1 NI for the same earnings — useful for comparing the tax efficiency of employment vs self-employment. The comparison table shows the NI saving from being self-employed at each income level.

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UK National Insurance Calculator · Tax year 2025-26 · Class 1 employee: 8%/2% · Class 1 employer: 15% · Class 4: 6%/2% · HMRC rates · For guidance only — verify with HMRC or a payroll professional