If you have income from more than one job or if you have self-employment income as well as being employed, you should ensure that you do not pay more national insurance than you need to.
The prescribed annual maximum contribution for an individual is set by the total of the main Class 1 NIC on earnings between the thresholds for the year.
You can request deferment of contributions from HMRC, who may issue a certificate telling one or more employers not to deduct primary Class 1 contributions from you during the tax year.
Note: This article has been updated on 01 June 2026 to reflect the latest 2026/27 National Insurance rates and thresholds confirmed by HMRC.
Key takeaways
- Employees pay Class 1 NICs at 8% on earnings between £12,570 and £50,270 and 2% above that for 2026/27
- Self-employed individuals pay Class 4 NICs at 6% on profits between £12,570 and £50,270 and 2% above that
- Employers pay 15% NIC on earnings above £5,000 per year, a rate frozen until April 2028
- If you have more than one job, each employer deducts NIC independently, which can push your total contributions above the annual maximum
- You can apply to HMRC for deferment during the tax year to avoid overpaying or claim a refund after the year end
- Compulsory Class 2 NICs were abolished in April 2024; self-employed individuals with profits above £7,105 now receive NI credits automatically
- From 6 April 2026, those living abroad can no longer pay voluntary Class 2 contributions and must pay Class 3 NICs at £18.40 per week instead
- You need 35 qualifying years of NI contributions for the full State Pension, with a minimum of 10 years for any entitlement
National Insurance Rates in 2026-27
Understanding the national insurance rates 2026/27 is the first step to making sure you are not overpaying. For the 2026/27 tax year, employees pay Class 1 NICs as follows:
- 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270) per year
- 2% on any earnings above £50,270 per year
How much is National Insurance for Employers?
The company, as employer, must pay 15% National Insurance contributions on your salary above the Secondary Threshold of £5,000 per year. This rate and threshold remain frozen until April 2028.
The Employment Allowance of £10,500 is available to eligible employers and can fully offset employer NIC costs. Note that single-director companies with no other employees cannot claim this allowance.
How much is National Insurance for the Self-Employed?
Self-employed individuals pay Class 4 NICs at 6% on profits between £12,570 and £50,270 and 2% on any profits above that. These are paid through Self-Assessment alongside income tax, due by 31 January following the end of the tax year.
National Insurance Threshold Summary in 2026-27
| Threshold | Annual Amount |
|---|---|
| Lower Earnings Limit (LEL) | £6,708 per year |
| Small Profits Threshold (self-employed) | £7,105 per year |
| Primary Threshold (employees start paying) | £12,570 per year |
| Secondary Threshold (employers start paying) | £5,000 per year |
| Upper Earnings Limit | £50,270 per year |
These figures may change over time, so it is advisable to check the latest guidance from HMRC.
Class 1 Contributions
HMRC’s National Insurance Contributions Office will advise you for which employments deferment of contributions has been allowed. They will provide certificates to employers notifying them not to deduct primary Class 1 contributions and to refund any they have already deducted.
If you have more than one employment, each employer deducts Class 1 NIC independently. Neither employer knows about your other income, which can result in you paying more NIC in total than someone earning the same amount from a single job.
Class 2 Contributions
Compulsory Class 2 NICs have been abolished from April 2024.
If your profits from self-employment are above the Small Profits Threshold (£7,105 for 2026/27), you will receive National Insurance credits automatically. No payment of Class 2 NICs is required.
If your profits are below £7,105, you may pay Class 2 contributions voluntarily at £3.65 per week for 2026/27 to maintain your entitlement to benefits such as the State Pension and Maternity Allowance.
Filling gaps in your NI Record
You will need 35 full years of National Insurance contributions to be entitled to the full State Pension. A minimum of 10 qualifying years is required for any entitlement at all.
You can pay voluntary NICs to fill gaps, but you can now only buy back up to 6 previous tax years. You can check your NI record and State Pension forecast through your personal tax account.
Important change for those living abroad
From 6 April 2026, individuals living abroad can no longer pay voluntary Class 2 contributions. They must instead pay the higher voluntary Class 3 NICs at £18.40 per week to maintain their UK State Pension record.
Why is my National Insurance so high?
This is one of the most common questions UK workers and directors ask. There are several reasons your NIC bill may feel higher than expected.
If you answered yes to any of these, you may be overpaying during the year.
You have more than one job
If you have more than one employment, each employer deducts Class 1 NIC independently without knowing about your other income. This can result in you paying NIC on both jobs as if each were your only source of income, pushing your total contributions above the annual maximum.
This is the most common reason people find themselves asking why they are paying two lots of National Insurance. The good news is that you can request deferment from HMRC during the year or claim a refund after the tax year end if you have overpaid.
You have employment and self-employment income
If you have both PAYE income and self-employment profits, you may be paying Class 1 NICs and Class 4 NICs simultaneously. HMRC will apply a cap to your total contributions and issue a refund if you exceed the annual maximum.
Your earnings fluctuate
If you earn more in one pay period and less in another, you may pay NIC at a higher rate in a high-earning month even if your annual average earnings are below the upper threshold. This is a particular issue for commission-based workers or those with variable hours.
You are a director
Directors have NIC calculated on an annual earnings basis rather than per pay period. Depending on how your salary is structured throughout the year, this can result in higher deductions in certain months.
The Employer Rate Increased in April 2025
While employer NIC does not directly reduce your take-home pay, the rate increased from 13.8% to 15% in April 2025 and the threshold dropped from £9,100 to £5,000. This significantly increased the total cost of employment and may affect salary review decisions made by your employer.
After the Year-End
After the end of the tax year, HMRC will work out your overall contribution position and collect any balance of contributions that remain payable or process refunds for overpayments if applicable.
If you believe you have overpaid, you can contact HMRC through your personal tax account or check your National Insurance record to review your contributions history.
Frequently Asked Questions
What happens if I don’t pay National Insurance?
Gaps in your NI record can reduce your State Pension entitlement and affect eligibility for certain benefits.
What if I am paying too much National Insurance?
Contact HMRC through your personal tax account. If you have overpaid, HMRC will refund you automatically after the tax year end or invite you to claim one.
Why do high earners only pay 2% NI?
The 2% rate applies to earnings above the Upper Earnings Limit of £50,270. It is designed to ease the NIC burden at higher income levels, though it can feel unfair to those with irregular pay who temporarily exceed the threshold in a single period.
Why am I paying a lot of National Insurance?
The most common reasons are multiple jobs, combined employment and self-employment income or variable earnings that push you into higher NIC bands in certain pay periods. HMRC will reconcile your position after the year end and refund any overpayment.
Why am I paying 2 lots of National Insurance?
Each employer deducts Class 1 NIC independently. If you are also self-employed, Class 4 NIC applies on top. Apply to HMRC for deferment during the year or claim a refund afterwards.
Can I choose not to pay NI?
No, NIC is compulsory above £12,570 for both employees and the self-employed. If your self-employment profits are above £7,105 but below £12,570, you receive NI credits automatically with no payment due.
How much is National Insurance in 2026/27?
Employees pay 8% on earnings between £12,570 and £50,270 and 2% above that. Employers pay 15% on earnings above £5,000. Self-employed individuals pay Class 4 NICs at 6% between £12,570 and £50,270 and 2% above that.
What is the National Insurance threshold for 2026/27?
The Primary Threshold is £12,570, the Secondary Threshold is £5,000 and the Upper Earnings Limit is £50,270 per year.
Divyanshi is a subject matter expert in the UK accounting space, creating clear and easy-to-read content for accountants and businesses. She covers topics such as VAT returns, Self-assessment tax, bookkeeping, business planning and Year-end accounts. By understanding the common challenges faced by accountants and business owners, she focuses on writing content that answers real questions and simplifies complex topics. Her approach keeps information clear, relevant and useful for everyday business needs.
