National Insurance Contributions

Tax Rates 2025/26

 

Introduction
Income Tax
Pensions
Annual investment limits
National Insurance Contributions
Vehicle Benefits
Tax-free mileage allowances
Capital Gains Tax
Corporation Tax
Main capital allowances
Property Taxes
Value Added Tax
Inheritance Tax
Key dates and deadlines 
National minimum wage

National Insurance Contributions

Class 1 (Employees)


Employee Employer
Main NIC rate 8% 15%
No NIC on first £242pw £96pw
Main rate charged up to* £967pw no limit
2% rate on earnings above £967pw N/A
Employment allowance per business** N/A £10,500

*Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.

**Some businesses do not qualify, including certain sole director companies.

Employer contributions (at 15%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).


Class 2 (Self employed)

Flat rate per week if profits below £6,845 (voluntary) £3.50
 

Class 3 (Voluntary)

Class3: Flat rate per week £17.75
 

Class 4 (Self employed)

On profits between £12,570 and £50,270 6%
 
On profits over £50,270 2%
 

Employees with earnings above £125pw and the self-employed with profits over £6,845 (or who pay voluntary Class 2 contributions) can access entitlement to contributory benefits.