National Insurance Explained: Classes, Rates, Your Record
You pay National Insurance to qualify for certain benefits and the State Pension. In the 2026 to 2027 tax year, most employees pay 8% on weekly earnings between £242 and £967 and 2% above that. Self-employed people pay Class 4 at 6% on profits over £12,570 up to £50,270, and 2% on profits above £50,270.
More guides are in the tax hub.
Who pays National Insurance
You pay mandatory National Insurance if you are 16 or over and either an employee earning more than £242 a week from one job, or self-employed with profits of more than £12,570 a year.
Employees earning £129 to £242 a week from one job usually pay nothing but may still qualify for some benefits and the State Pension. Self-employed people with profits of £7,105 or more have Class 2 treated as paid, so they do not have to pay Class 2.
If you are employed and self-employed, your employer deducts Class 1 and you may pay Class 4 on self-employed profits; HMRC tells you how much after you file your Self Assessment return.
Your National Insurance number
Your National Insurance number makes sure contributions and tax are recorded against you only. It stays the same for life and is made up of 2 letters, 6 numbers and a final letter (GOV.UK’s example: QQ123456B). You usually receive a letter shortly before your 16th birthday; the number also appears on your payslip or P60.
GOV.UK advises not sharing it except with those who need it, such as HMRC, your employer, DWP, or your pension or ISA provider.
Rates for employees
From 6 April 2026 to 5 April 2027, Class 1 rates for most people (category A) are:
- £242 to £967 a week (£1,048 to £4,189 a month): 8%
- Over £967 a week (over £4,189 a month): 2%
GOV.UK’s example for category A: weekly pay of £1,000 gives £58.66 National Insurance for the week (nothing on the first £242, 8% between £242.01 and £967, 2% above £967).
Your employer deducts Class 1 before you are paid. Most employees have category A on the payslip; other letters include C (over State Pension age), H (apprentices under 25), M (under 21) and V (first job after leaving the armed forces). Employers pay their own National Insurance on top; for category A the employer rate from 6 April 2026 to 5 April 2027 is 15% on weekly earnings from £96.
Rates for the self-employed
In 2026 to 2027, Class 4 is 6% on profits over £12,570 up to £50,270, and 2% on profits over £50,270. Profits under £7,105: nothing to pay, but you can pay voluntary Class 2 at £3.65 a week to avoid gaps.
Most people pay Class 2 and Class 4 through Self Assessment. Class 4 does not count towards state benefits or pensions. You stop paying Class 4 from 6 April (the start of the tax year) after you reach State Pension age. GOV.UK notes special rules for landlords, examiners, ministers of religion and some investors.
What your contributions count towards
| Class | Counts towards |
|---|---|
| Class 1 | Basic State Pension, Additional State Pension, new State Pension, New Style Jobseeker’s Allowance, contribution-based Employment and Support Allowance, Maternity Allowance, Bereavement Support Payment |
| Class 2 | Basic State Pension, new State Pension, contribution-based Employment and Support Allowance, Maternity Allowance, Bereavement Support Payment |
| Class 3 (voluntary) | Basic and new State Pension only |
Credits and voluntary contributions
Employees earning less than £129 a week from one job, and people not working, can pay voluntary Class 3 contributions to cover gaps.
National Insurance credits can fill gaps when you cannot pay, for example if you are unable to work due to illness or caring. Class 1 credits count towards the State Pension and some benefits; Class 3 credits count towards the State Pension only.
A parent or guardian registered for Child Benefit for a child under 12 gets Class 3 credits automatically, even if they do not receive the payments.
Checking your record
Checking online shows what you paid up to the start of the 2026 to 2027 tax year (6 April 2026), credits, gaps in qualifying years, whether voluntary contributions would help, and how your State Pension forecast would change. You sign in and may need photo ID such as a passport or driving licence. You can request a printed statement, but not for the current or previous tax year.
Tell HMRC if you change personal details or start or stop being self-employed. You can ask HMRC to check your record and claim a refund if you think you overpaid.
Frequently asked questions
How much National Insurance do employees pay in 2026 to 2027?
In category A, you pay 8% on weekly earnings between £242 and £967 and 2% on earnings above £967. Monthly equivalents are £1,048 to £4,189 at 8% and above £4,189 at 2%.
Do self-employed people still pay Class 2?
If your profits are £7,105 or more, Class 2 is treated as paid and you do not have to pay it. With profits under £7,105 you pay nothing, but you can choose voluntary Class 2 at £3.65 a week in 2026 to 2027.
When do I stop paying National Insurance?
Employees stop paying Class 1 when they reach State Pension age. Self-employed people stop paying Class 4 from 6 April (the start of the tax year) after they reach State Pension age.
Can I get National Insurance credits if I am not working?
National Insurance credits can fill gaps if you cannot pay, for example when ill or caring for someone. A parent or guardian registered for Child Benefit for a child under 12 gets Class 3 credits automatically.
How do I check my National Insurance record?
You can check online what you have paid up to the start of the current tax year (6 April 2026), any credits, gaps in qualifying years, and how voluntary contributions would affect your State Pension forecast. You may need photo ID to sign in.
Sources
Disclaimer: This article is general information and not personal financial, tax or legal advice. Check your own situation with HMRC, GOV.UK or a regulated adviser.