National Insurance 2025/26: What’s Changed, Who Pays What, and Why It Still Matters

The big picture

National Insurance (NI) is one of those topics everyone thinks they understand — until it changes again.
For 2025/26, rates remain historically low, but the rules around who pays, what’s voluntary, and how to protect your State Pension have shifted.

Here’s the no-nonsense guide to what’s really going on.

1️⃣ The new National Insurance rates

From 6 April 2025, here’s what’s in force:

2️⃣ Why would anyone pay extra National Insurance?

There are good reasons:

• To protect your State Pension, if you have gaps in your record, paying Class 3 (or voluntary Class 2 if eligible) fills those missing years.

• To stay insured for certain benefits, such as maternity allowance or bereavement support.

• To future-proof - NI rules change often, but a full contribution record rarely goes to waste.

You can check your current record and get a forecast here:
👉 Check your National Insurance record on GOV.UK
👉 Check your State Pension forecast

3️⃣ Voluntary contributions - key deadlines

The window to fill old gaps has been extended a few times, but the latest deadline was 5 April 2025.
Now, you’ll only be able to buy back the previous six tax years.

💡 Tip: Call the Future Pension Centre before paying - sometimes gaps don’t actually boost your pension because you already qualify for the full 35 years.

4️⃣ Increases are tough news for employers

While employees and the self-employed saw NI cuts, employers’ Class 1A and 1B rates remain 13.8%.
That means every pay rise, benefit, or bonus still carries a chunky NI cost for small firms.

If you employ staff, review:

• Whether salary-sacrifice pension contributions could reduce employer NI.

• If your payroll software applies the Employment Allowance correctly (with a £5,000 limit).

For micro-employers, those savings can make a real difference.

5️⃣ Don’t miss out on your State Pension

Many people reaching their 40s or 50s have gaps without realising.
To get the full new State Pension (£221.20 per week in 2025/26), you usually need 35 qualifying years.

Here’s where to check:

• Check your State Pension forecast

• Find gaps in your NI record

6️⃣ Self-employed: what’s changed

The removal of compulsory Class 2 makes life simpler - one less Direct Debit!
But you still earn a NI credit toward your pension automatically if your profits exceed £6,725.
Below that, you can opt to pay voluntary Class 2 to keep your record intact.

Our view

The NI cuts were meant to simplify things, and they did, a bit, but the real winners are those who keep an eye on their pension record.
For employers, the story’s less rosy: rates haven’t moved, and payroll NI remains a significant cost.

If you’re not sure whether to make voluntary payments or how the abolition of Class 2 affects you, talk to us before the April 2025 deadline.
A quick review could be worth thousands in future pension income.