National Insurance in the UK is not a single fixed amount; it is a percentage of what you earn, and the rate depends mainly on whether you are employed or self‑employed and how much your income is.
Key idea
- You only start paying National Insurance once your earnings go above a set threshold each year.
- Above that threshold, a percentage rate is applied to your earnings in certain bands (a lower rate below the threshold, a main rate in the middle band, and a smaller rate on very high earnings).
If you are an employee
- Employees pay “Class 1” National Insurance through PAYE, taken directly from their salary before it is paid.
- The main Class 1 rate is a single‑digit percentage on earnings between roughly the personal NI threshold and an upper earnings limit, with a smaller percentage on earnings above that upper limit; these bands and rates are set by the government and can change each tax year.
If you are self‑employed
- Self‑employed people normally pay “Class 4” on their profits (a percentage in bands, similar to employees) and may also pay a small flat weekly “Class 2” amount if their profits are above a separate threshold.
- Below the Class 4 threshold you pay 0%, then a main percentage rate on profits in the middle band, and a lower percentage on profits above the upper band.
How to find your exact amount
- The exact amount you pay depends on your annual income, whether you are employed or self‑employed, your age, and whether you have reached State Pension age (you usually stop paying NI after that).
- To see “how much” for your own situation, you can use an online National Insurance calculator from a reputable UK money site or check the current year’s detailed rates and thresholds on the official government website, then plug in your salary or profit figure.
