National Insurance Calculator UK

National Insurance (NI) is a UK tax on earnings and self-employment profits. It funds the State Pension, certain benefits, and the NHS. Employees pay Class 1 NI, self-employed pay Class 2 and Class 4, and employers also pay Class 1 (secondary contributions). Your NI record determines your eligibility for State Pension and other contributory benefits.

For 2024/25, employees pay 8% on earnings between £12,570 and £50,270 (the primary threshold to upper earnings limit), and 2% on earnings above £50,270. The main rate was reduced from 12% to 8% in April 2024. You pay nothing on the first £12,570 of annual earnings.

Employers pay 13.8% on all employee earnings above the secondary threshold of £9,100 per year. There is no upper limit on employer NI — it applies to all earnings above the threshold. Employer NI is a significant additional cost on top of salary and is not deducted from your pay.

Self-employed people pay Class 2 NI at £3.45/week if profits exceed £12,570, plus Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 is being simplified — from 2024/25, Class 2 liability is removed but NI credits are preserved through a zero-rate Class 2.

Your NI category letter determines the rates you pay. Category A is the standard rate for most employees. Category B is a reduced rate for some married women. Category C applies to employees over State Pension age (they pay nothing, employer still pays). Category H is for apprentices under 25, and M is for employees under 21.

You need 35 qualifying years for the full new State Pension (£221.20/week in 2024/25). You need at least 10 qualifying years to get any State Pension. A qualifying year is one where you paid or were credited with sufficient NI contributions. You can check your NI record and pension forecast at gov.uk.

Yes. NI credits are given for: claiming Child Benefit for a child under 12, receiving certain benefits (Jobseeker's Allowance, Universal Credit, Carer's Allowance), jury service, and approved training courses. Credits protect your State Pension entitlement even when you are not paying NI.

NI is calculated before pension contributions — there is no NI relief on pension contributions (unlike income tax). If your employer uses salary sacrifice for pension contributions, the sacrifice reduces your salary before NI is calculated, effectively saving NI. This is one of the main advantages of salary sacrifice pension schemes.

Yes. From April 2025, employers have an Employment Allowance of £10,500 per year, which reduces their employer NI liability. This means small businesses with employer NI below £10,500 pay no employer NI at all. The allowance is claimed through payroll software and is available to most businesses unless they are a single-director company with no other employees.

The primary threshold (where employees start paying) is £12,570/year (£1,048/month). The secondary threshold (where employers start paying) is £9,100/year (£758/month). The upper earnings limit (where the rate drops to 2%) is £50,270/year. These thresholds are important for understanding your NI liability.