Tax year: 2026/27 | Last reviewed: 2 October 2026
National Insurance contributions (NICs) fund the State Pension and some benefits. Which class you pay depends on whether you are employed, self-employed, an employer or topping up your record voluntarily. Here is a quick guide to each class for the 2026/27 tax year.
Class 1: employees and employers
Employees pay primary Class 1 through PAYE:
- 0% up to £12,570 a year (£1,048 a month)
- 8% between £12,570 and £50,270
- 2% above £50,270
Earnings between the Lower Earnings Limit of £6,708 and £12,570 count for State Pension without any NI being paid.
Employers pay secondary Class 1 at 15% on earnings above £5,000 a year. Eligible employers can claim the Employment Allowance of up to £10,500 to reduce the bill, but not if the only employee is a director. Employer NI is not charged on employees under 21 or apprentices under 25 on earnings up to £50,270.
Class 1A and 1B: benefits
Employers pay Class 1A at 15% on most taxable benefits in kind, such as company cars and private medical insurance, reported on P11Ds or payrolled. Class 1B at 15% applies to items in a PAYE Settlement Agreement.
Class 2: self-employed (now voluntary)
Class 2 used to be a flat weekly charge for the self-employed. Since 6 April 2024 nobody has to pay it. Self-employed people with profits over £7,105 get State Pension credit automatically, and those below can pay voluntary Class 2 at £3.65 a week. See Class 2 NI abolished: what it means.
Class 3: voluntary contributions
Class 3 is a flat weekly voluntary contribution for people who are not working or not paying enough NI, for example while living abroad or caring for someone without credits. It is more expensive than Class 2, but can still be excellent value. One year of Class 3 can add around 1/35th of the full State Pension for the rest of your life.
Class 4: self-employed profits
Sole traders and partners pay Class 4 through Self Assessment:
- 6% on profits between £12,570 and £50,270
- 2% on profits above £50,270
Read our guide to Class 4 NI for 2026/27 and NI for sole traders.
Which classes might you pay?
- Employee: Class 1 through payroll
- Sole trader: Class 4, and possibly voluntary Class 2
- Company director: Class 1 on salary, nothing on dividends. Read best director salary 2026/27
- Employer: secondary Class 1 and Class 1A
- Gaps in your record: Class 3 or voluntary Class 2
FAQs
Do I pay NI after State Pension age?
No employee or self-employed NI is due once you reach State Pension age, although employers still pay secondary Class 1.
How do I check my NI record?
Through your HMRC personal tax account or the HMRC app, which also gives a State Pension forecast.
Is there NI on dividends or rental income?
No. Neither dividends nor property income from letting attract NI.
Talk it through with Digivolve
Unsure whether you have gaps in your NI record? We review your HMRC record and tell you which years are worth topping up.
This article is general information based on the rules for the 2026/27 tax year as at October 2026. It is not personal tax advice. Rates and thresholds can change, so please speak to us before acting.