National Insurance
UK tax glossary · Last reviewed: April 2026
National Insurance (NI) is separate from Income Tax. Employees pay Class 1 NI on earnings above the Primary Threshold (£12,570 in 2026/27); employers pay a separate employer Class 1 charge above the Secondary Threshold (£5,000 in 2026/27).
Your NI record determines eligibility for some benefits and how much State Pension you receive. You generally need 35 qualifying years for the full new State Pension (£230.25/week from April 2026).
Class 2 NI for the self-employed was abolished from April 2024. Self-employed people now pay Class 4 only, at 6% on profits between £12,570 and £50,270, and 2% above. Class 2 NI credits were incorporated into Class 4 to protect State Pension entitlement.
Worked example
Employee earning £30,000/year: NI = (£30,000 − £12,570) × 8% = £17,430 × 8% = £1,394.40/year (£116.20/month). Employer also pays: (£30,000 − £5,000) × 15% = £3,750/year.
Common questions
Does paying more National Insurance give me a bigger State Pension?
Once you have 35 qualifying years, additional NI contributions do not increase the State Pension further. However, they may qualify you for Bereavement Benefits or certain other benefits.
What if I take a career break — can I fill NI gaps voluntarily?
Yes. You can pay voluntary Class 3 NI contributions to fill gaps in your record. Check your State Pension forecast on GOV.UK first, as not all gaps are worth filling.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.