NICs rates, limits and thresholds for 2026-27 take effect

The Social Security (Contributions) (Rates, Limits and Thresholds Amendments, National Insurance Funds Payments and Extension of Veteran's Relief) Regulations 2026 give effect to the annual re-rating of National Insurance contributions rates, limits and thresholds for the tax year beginning 6 April 2026¹. The instrument, laid by HMRC on behalf of HM Treasury, covers Class 1, Class 2, Class 3 and Class 4 NICs and extends to the whole United Kingdom¹.

For employees, primary Class 1 contributions are payable at 8% on earnings between the primary threshold and the upper earnings limit, with the additional rate of 2% applying above the upper earnings limit¹. The primary threshold and the Class 4 lower profits limit are fixed at £12,570 for 2026-27, and the upper earnings limit and upper profits limit remain at £50,270¹. The lower earnings limit, the point at which employees begin to build entitlement to certain contributory benefits, rises from £125 to £129 a week from 6 April 2026¹. Employers pay secondary Class 1 contributions at 15% on earnings above the secondary threshold, with no upper limit¹.

For the self-employed, Class 4 contributions are charged at 6% on taxable profits between the lower and upper profits limits, and at 2% on profits above the upper profits limit¹. The weekly flat rate for Class 2 contributions rises from £3.50 to £3.65, and the small profits threshold rises from £6,845 to £7,105¹. Class 3 voluntary contributions rise from £17.75 to £18.40 a week from 6 April 2026¹.

The instrument also extends the zero-rate relief on secondary Class 1 contributions for employers of qualifying veterans for the 2026-27 and 2027-28 tax years¹. The relief means employers pay no NICs for the first year of a veteran's employment up to salaries of £50,270, and has been available since April 2021¹.

The regulations also permit payments of a Treasury Grant not exceeding 5% of estimated benefit expenditure for 2026-27 to be made into the National Insurance Fund, with corresponding provision for Northern Ireland¹.

Why it matters for households

The rates and thresholds apply to earnings and profits from 6 April 2026¹. Employees continue to pay 8% on earnings between £12,570 and £50,270, with 2% above that, so the amount deducted depends on pay falling within those bands¹. The lower earnings limit rise to £129 a week means the point at which employees start to accrue entitlement to certain contributory benefits moves up slightly¹. Self-employed people with profits at or above the small profits threshold, now £7,105, are treated as having paid Class 2 contributions, while those below it may pay voluntarily at the higher weekly rate of £3.65¹. Class 3 voluntary contributions cost £18.40 a week from 6 April 2026¹. Employers of qualifying veterans continue to pay no secondary Class 1 contributions in the first year of employment up to £50,270 until April 2028¹.

The memorandum states that the income tax personal allowance and higher rate threshold, along with the NICs upper earnings limit, upper profits limit, primary threshold and lower profits limit, are fixed until the 2030-31 tax year, after which they will be uprated by September CPI¹. It adds that the primary threshold and lower profits limit will be maintained at £12,570 from April 2028 until April 2031, and the upper earnings limit and upper profits limit at £50,270 over the same period¹. The secondary threshold was reduced to £5,000 from the 2025-26 tax year and frozen at that level up to 2027-28, remaining fixed until 2030-31¹.

What happens next

The rates, limits and thresholds set by the instrument apply for the 2026-27 tax year only, with future years continuing to be set annually through the re-rating exercise¹. The veterans' relief extension runs for the 2026-27 and 2027-28 tax years, ending in April 2028¹. The memorandum states that the primary threshold, lower profits limit, upper earnings limit and upper profits limit will be maintained at their current levels from April 2028 until April 2031, after which they will be uprated by September CPI¹.