Answers · UK 2025/26
Why is NI 8% in 2025/26?
The 8% main rate of Class 1 employee National Insurance was set in January 2024, when the government cut the rate from 10% to 8% on earnings between £12,570 and £50,270. It remains at 8% for the 2025/26 tax year. Above £50,270 the rate is 2%.
Full answer
Class 1 employee NI was 12% before 6 January 2024. The November 2023 Autumn Statement cut it to 10%, then the March 2024 Budget cut it again to 8% from 6 April 2024. The Conservative government framed the cuts as supporting workers; the Labour government that took office in July 2024 kept the 8% rate for 2025/26 in the October 2024 Budget, but raised employer Class 1 secondary NI from 13.8% to 15% and lowered the secondary threshold from £9,100 to £5,000 — a measure expected to raise around £25 billion. Worked example: someone earning £40,000 pays NI on £40,000 − £12,570 = £27,430 × 8% = £2,194, versus £3,292 at the old 12% rate — a £1,098 saving. Above £50,270 the rate falls to 2%. The self-employed equivalent (Class 4) is 6% on profits £12,570–£50,270 and 2% above, with Class 2 abolished from April 2024 (still voluntarily payable to protect benefit entitlement if profits are below £6,725).
Try the calculator
Related guides
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.