Use our free UK National Insurance (NI) calculator to estimate Class 1 Employee NI, Employer NI and Class 4 National Insurance for common contractor working structures. It is designed for limited company directors, umbrella workers, PAYE employees, sole traders and CIS subcontractors who want a fast, transparent NI breakdown.
The calculator uses standard UK NI thresholds and rates for 2026/27, with options to compare the current Employer NI position against the pre-April 2025 baseline. This is particularly useful for contractors reviewing salary levels, umbrella assignment rates, payroll costs and pricing decisions.
| Component | Amount in band | Rate | NI amount |
|---|
For 2026/27, the standard employee Class 1 rate is 8% between the Primary Threshold and Upper Earnings Limit, then 2% above the Upper Earnings Limit. Employer Class 1 NI is 15% above the Secondary Threshold. For self-employed profits, Class 4 NI is 6% between £12,570 and £50,270, then 2% above £50,270.
| Tax year | Employee Class 1 | Employer Class 1 | Class 4 self-employed |
|---|---|---|---|
| 2026/27 | 8% from £12,570 to £50,270; 2% above £50,270 | 15% above £5,000 | 6% from £12,570 to £50,270; 2% above £50,270 |
| 2025/26 | 8% from £12,570 to £50,270; 2% above £50,270 | 15% above £5,000 | 6% from £12,570 to £50,270; 2% above £50,270 |
| 2024/25 baseline | 8% from £12,570 to £50,270; 2% above £50,270 | 13.8% above £9,100 | 6% from £12,570 to £50,270; 2% above £50,270 |
Sources: GOV.UK National Insurance rates and allowances and GOV.UK how much National Insurance you pay.
Navigating National Insurance as a contractor depends on your working structure. A limited company director paid a salary through payroll may have Employee NI deducted from salary and Employer NI paid by the company. An umbrella worker is normally paid through PAYE, but the commercial assignment rate often has to cover employment costs before taxable gross pay is finalised. A sole trader or CIS subcontractor does not pay Employer NI, but may pay Class 4 NI on trading profits.
The major Employer National Insurance change started from April 2025 and continues in 2026/27. The main Employer NI rate is 15%, and the annual Secondary Threshold is £5,000. This matters for contractors because Employer NI can increase the total cost of a salary, inside IR35 engagement or umbrella assignment.
As a director, you are both an employee and the employer. Employee NI is deducted from gross salary, while Employer NI is an additional company payroll cost. Many contractors therefore review their salary level alongside dividends, pension contributions and company profit planning.
If you work through an umbrella company, your payslip may show Employer NI as an employment cost funded from the assignment rate rather than a personal employee deduction. This is one reason inside IR35 or umbrella contract rates often need to be higher than equivalent permanent salary figures.
Self-employed individuals do not pay Employer NI. Instead, they may pay Class 4 National Insurance on trading profits. The calculator uses the standard Class 4 bands but does not calculate Income Tax or CIS deductions.
The examples below mirror the calculator logic and are rounded to the nearest pound for readability.
Real umbrella calculations may also include Apprenticeship Levy, umbrella margin, pension contributions and holiday pay treatment.
This calculator provides an illustrative estimate based on standard National Insurance thresholds and rates. It is not a substitute for payroll advice, tax advice or accountancy advice. Always check your position with a qualified accountant, payroll provider or umbrella company before making financial decisions.