National Insurance rates set out how much you pay in contributions based on your income and employment status. These contributions help fund the State Pension, the NHS, and other state benefits.
If you’re employed, your employer also pays National Insurance on your wages. If you’re self-employed, you pay different National Insurance rates and classes through Self-Assessment.
The rate you pay depends on your earnings and which National Insurance class you fall under for example, Class 1 for employees, Class 2 and Class 4 for the self-employed.
Knowing what National Insurance rates apply to you helps you understand what’s taken from your pay, how it affects your take-home income, and what state benefits you’re building up for the future.
Before you can work out how much National Insurance you’ll pay, it’s important to know which National Insurance class applies to you. Your rate depends on whether you’re employed, self-employed, or earning above certain thresholds.
Employees usually pay Class 1 National Insurance, which is deducted automatically through PAYE by your employer. If you’re self-employed, you’ll pay Class 2 and Class 4 contributions through your Self-Assessment tax return.
Checking your earnings, knowing the current rates, and understanding your contribution record helps you plan ahead, stay compliant, and make sure you qualify for benefits like the State Pension.
Most people who work in the UK pay National Insurance contributions once they earn over a certain amount. This includes:
Employees If you’re employed and earn above the primary threshold, you pay Class 1 National Insurance. Your employer deducts it automatically through PAYE and also pays an employer’s contribution on your wages.
Self-Employed If you’re self-employed, you usually pay Class 2 and Class 4 National Insurance through your Self-Assessment tax return. The amount depends on your profits.
Employers Employers must also pay National Insurance on their employees’ earnings above certain thresholds.
Some Voluntary Payers If you’re not working or your earnings are too low, you can choose to pay Class 3 voluntary contributions to fill gaps in your National Insurance record. This can help you qualify for the full State Pension.
Understanding who pays National Insurance and how it works helps you keep track of your contributions and stay eligible for future state benefits.
How you pay National Insurance depends on whether you’re employed, self-employed, or paying voluntarily.
Employees
If you’re employed, your National Insurance contributions (Class 1) are automatically deducted from your wages by your employer through the PAYE system. Your employer also pays an employer’s National Insurance contribution on top of your wages.
Self-Employed
If you’re self-employed, you pay Class 2 and Class 4 National Insurance through your Self-Assessment tax return. Class 2 is a flat weekly rate, while Class 4 is a percentage of your annual profits over a set threshold.
Voluntary Contributions
If you’re not working or your earnings are below the minimum thresholds, you can choose to pay Class 3 voluntary National Insurance to protect your State Pension entitlement.
Keep Records
Make sure you keep good records of your income and contributions, check your National Insurance record with HMRC, and fill any gaps if needed to make sure you qualify for benefits like the State Pension or Maternity Allowance.
What are National Insurance rates in the UK?
National Insurance rates are percentages or fixed amounts paid on your earnings to help fund the State Pension and other benefits. The rates depend on your income and whether you’re employed or self-employed.
Who pays National Insurance contributions?
Most employees, self-employed people, and employers in the UK pay National Insurance if earnings or profits are above certain thresholds. Some people can pay voluntary contributions to fill gaps.
What is Class 1 National Insurance?
Class 1 National Insurance applies to employees. It’s automatically deducted by your employer through PAYE along with Income Tax. Employers also pay an extra employer’s NI contribution.
What are Class 2 and Class 4 National Insurance?
Class 2 is a flat weekly rate for self-employed people with profits above a small profits threshold. Class 4 is a percentage of annual profits above a set limit, paid through Self Assessment.
Can I pay voluntary National Insurance?
Yes. If you’re not working or your income is too low, you can pay Class 3 voluntary contributions to fill gaps in your record and protect your entitlement to the State Pension.
How do I check my National Insurance record?
You can check your National Insurance record online through your HMRC Personal Tax Account. This shows your contributions and any gaps that could affect your benefits.
When do I pay National Insurance?
Employees pay National Insurance each time they’re paid. The self-employed pay their NI contributions at the same time they pay their Self Assessment tax bill.
What happens if I don’t pay enough National Insurance?
Not paying enough National Insurance can affect your eligibility for certain state benefits, like the full State Pension. You may be able to make voluntary payments to top up your record.
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