What is the difference between Class 1 and Class 4 NI?

Class 1 NI is paid by employees (and matched by employers) based on gross earnings. Class 4 NI is paid by the self-employed based on taxable profits, usually via self assessment.

What are the NI thresholds for 2026/27?

The Primary Threshold (Class 1) and Lower Profits Limit (Class 4) are both £12,570. The Upper Earnings/Profits Limit is £50,270. Above this limit, a reduced 2% rate applies.

Do I pay NI on pension income?

No. National Insurance is not payable on pension income, rental income, or savings interest — only on employment earnings and self-employment profits.

National Insurance Calculator 2026/27

Calculate your National Insurance contributions for 2026/27. Select Class 1 if you are employed or Class 4 if you are self-employed.

How it's calculated

Class 1 (employee): 8% on earnings £12,570–£50,270; 2% above.
Class 4 (self-employed): 6% on profits £12,570–£50,270; 2% above.

Frequently Asked Questions

What is the difference between Class 1 and Class 4 NI?: Class 1 NI is paid by employees (and matched by employers) based on gross earnings. Class 4 NI is paid by the self-employed based on taxable profits, usually via self assessment.
What are the NI thresholds for 2026/27?: The Primary Threshold (Class 1) and Lower Profits Limit (Class 4) are both £12,570. The Upper Earnings/Profits Limit is £50,270. Above this limit, a reduced 2% rate applies.
Do I pay NI on pension income?: No. National Insurance is not payable on pension income, rental income, or savings interest — only on employment earnings and self-employment profits.