How much is the National Insurance in the UK? (2025/26 Explained)
- Feb 9
- 3 min read
Updated: 2 days ago
"How much do I pay for National Insurance (NI)?"- one of the most common tax questions we get asked at DUO Accountants. In this blog, we'll explain NI in simple language for business owners, sole traders or anyone curious about it.
What is National Insurance (NI)?
National Insurance (NI) is a contribution that almost all working people in the UK pay. The amount depends on whether you're employed, self-employed or both, how much you earn, and to which class of NI you pay. You usually start paying it from the age of 16 and if you earn above a certain threshold.
The amount you pay goes towards funding certain state benefits and public services such as State Pension. Generally, you need to have paid enough NI (or received NI Credits) to qualify for the full State Pension in the UK.
National Insurance for Employees (Class 1 Contributions)
If you are employed, NI is deducted from your salary through PAYE. The amount depends on how much you earned. Refer to the table below for 2025/2026 Employee Rates:
Earnings Range (weekly) | NI Rate |
£125 to £242 | 0% — no NI to pay |
£242 to £967 | 8% |
Over £967 | 2% |
Simply, your employer doesn't take any NI if you earn £242 and below in a week. If you earn £242 to £967, you pay 8% of that income as NI, and for anything over £967 per week, you pay 2% on the amount over £967.
This structure applies whether you’re paid weekly or monthly. It just adjusts to the pay period.
National Insurance for Employers
Employers pay NI too on their employee earnings! For the tax year 2025/26, employers pay:
15% on earnings above £5,000 per year
Remember that this is not from an employee's pay pocket. This is part of the cost of having staff, which does affect your overall business cost. Hence, at DUO, we help business owners plan for this.
National Insurance for Self-Employed
Self-employed individuals pay a different set of NI classes:
CLASS 2 NICs (Small Profits)
The rate is £3.50 per week if your profits are above £6,845 per year. This doesn’t always get paid — if your profits are above the minimum, you’re treated as having paid it for your NI record (important for state pension).
CLASS 4 (Main Self-Employed NI)
Class 4 NI is worked out when you do your Self-Assessment. Below are the rates:
Profit Range | NI Rate |
£12,570 to £50,270 | 6% |
Above £50,270 | 2% |
If you earn profit between £12,570 to £50,270 a year, 6% of it goes to NI contributions. If above £50,270, 2% rate applies.
Voluntary NI (Class 3)
If you have gaps in your NI record (e.g. not enough earnings in a year), you can pay voluntary contributions to protect your pension and benefit rights.
Class 3 weekly rate: £17.75 per week (2025/26)
This isn’t compulsory but sometimes is worth doing if you’ve missed contributing years.
Quick Summary
Employment Type | Rates (2025/26) | When you start paying |
Employee (Class 1) | 8% / 2% | Earnings over £12,570 |
Employer (Class 1) | 15% | Earnings over £5,000 |
Self-employed (Class 2) | £3.50/week | Profits over £6,845 |
Self-employed (Class 4) | 6% / 2% | Profits over £12,570 |
Voluntary (Class 3) | £17.75/week | Optional top-up |
Frequently Asked Questions
Do all workers pay National Insurance?
Most people aged 16 to state pension age who earn enough do. If you earn below certain thresholds, you may pay nothing but still get NI credits that count towards your State Pension.
Does NI count towards my pension?
Yes, paying enough NI (or getting credits) helps you qualify for the State Pension and some benefits.
Does NI go up with income tax?
No, NI and income tax are separate. You could pay one without the other. The thresholds and rates are set independently.
If I earn from more than one job, do I pay twice?
Yes, if you have multiple jobs and exceed the threshold in each, you could pay NI on each earnings source. But rules and thresholds can change what’s due each pay period.
What if I’m both employed and self-employed?
You’ll usually pay Class 1 NI through PAYE for your job and Class 2/4 NI through Self-Assessment for your self-employment profits. We can help you make sure you pay the right amounts.
Bottom Line
National Insurance isn't a set amount. It is calculated based on how much you earn. It can feel confusing especially if your income situation changes during the year, but many of the basics come down to how much you earn and how you work. Always remember, NICs are essential as it help secure benefits like the State Pension and safety-net support.
At DUO Accountants, we love making tax easier. If you have questions about your NI, or how to plan for tax year changes, we’re always here to help with friendly, jargon-free advice.
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