another layer to understand

National Insurance

It’s not just income tax. NI contributions build your entitlement to the State Pension and other benefits.

what it’s for

Why we pay it

National Insurance contributions (NICs) are paid by everyone over 16 in the UK who is either an employee earning above £12,570 a year, or self-employed with a profit (income less expenses) of £6,845 or more a year.

They’re your ticket to government benefits — the State Pension, Jobseeker’s/Universal Credit, Maternity Allowance and more. You don’t pay NI on foreign employed work; only UK income counts towards your UK entitlements.

if you’re employed

Class 1

Paid by employees earning more than £242 a week, deducted automatically from your salary and shown on your payslip.

Your earnings (2025/26)	NI rate
£12,570 – £50,270 a year	8%
Over £50,270 a year	2%

if you’re self-employed

Class 2 & Class 4

Here’s the rule of thumb based on your annual profit:

Your profit (2025/26)	What happens
Below £6,845	No compulsory NI. You can pay Class 2 voluntarily (£3.50/week) to protect your record.
£6,845 – £12,570	HMRC treats your Class 2 as covered automatically — you get the NI credit with nothing to pay.
Over £12,570	You pay Class 4 through your tax return: 6% on profit up to £50,270, then 2% above.

It’s all worked out for you automatically inside the self-assessment return.

A common wobble: HMRC shows a Class 2 amount even when you earned too little to owe it, then asks if you’d like to pay it voluntarily. If you don’t want to, simply answer “No” and you won’t be charged. See our Class 2 guide for the full walk-through.

both employed and self-employed?

You might pay both

If you hit both thresholds, you’ll pay both Class 1 (on your employed pay) and Class 2/4 (on your self-employed profit). It feels like a double-hit, but it’s really just building your record from both sides.

paying it

When and how

NI is paid the same way as your self-employed tax bill, and you can pay them together. The deadline is the self-assessment deadline — midnight on 31 January. You can pay any time after the tax year ends on 5 April, giving you up to 10 months’ runway. Want to check your record for gaps? Visit gov.uk/check-national-insurance — you can usually make voluntary payments up to 6 years back.

keep reading

Class 2 National Insurance How to Do Your Tax Return

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