If you have income from more than one job, or if you have self-employment income as well as being employed, you should ensure that you do not pay too much national insurance than you need to.
The prescribed annual maximum normal contribution for an individual is set by the total of the main Class 1 NIC on earnings between the thresholds for the year. You can request deferment of contributions from HMRC, who may issue a certificate telling one or more employers not to deduct primary Class 1 contributions from you during the tax year and to refund any over-deducted contributions.
Class 1 contributions
The Contributor Deferment Group will tell you for which employments they have allowed deferment of contributions. They will provide certificates to employers notifying them not to deduct primary Class 1 contributions and to refund any they already have deducted.
Class 2 contributions
A significant 2025/26 change: Compulsory Class 2 NICs have been abolished.
If your profits from self-employment are above the Small Profits Threshold (£6,845 for 2025/26), you will receive National Insurance credits automatically. No payment of Class 2 NICs is required.
If your profits are below £6,845, you may pay Class 2 contributions voluntarily (£3.50 per week) to maintain your entitlement to benefits such as Incapacity Benefit, Retirement Pension, Widow’s Benefit, and Maternity Allowance.
You will need 35 full years of National Insurance contributions to be entitled to the full state pension, which you can check online on your personal tax account. A minimum of 10 qualifying years is required for any entitlement. You can pay voluntary NICs to fill gaps, but after 5 April 2025, you will only be able to buy back up to 6 previous tax years.
If you are paying both Class 1 from employment(s) and making voluntary Class 2 contributions, and you expect to exceed the annual maximum, you may be able to defer additional contributions to avoid overpaying in total.
National Insurance borne by a shareholder-director in 2025/26 is determined by the latest thresholds and rates.
That is, for the 2025/26 tax year:
- As a director or employee, you will pay 8% on earnings between the Primary Threshold (£12,570 per year) and the Upper Earnings Limit (£50,270 per year), and 2% on earnings above this limit.
- The company, as employer, must pay 15% National Insurance contributions on your salary above the Secondary Threshold (£5,000 per year).
After the year-end
After the end of the tax year, HMRC will work out your overall contribution position and collect any balance of contributions that remain payable, or process refunds for overpayments if applicable.
FAQs
What happens if I don t pay national insurance?
If you do not pay national insurance, you may end up having gaps in your national records.
What if I am paying too much national insurance?
You can go to HMRC, apply for your national insurance, if you think you have overpaid, you can claim a refund.
Why do high earners only pay 2% NI?
Compared to people who earn the same amount evenly throughout the year, it is unfair to those with low or irregular income. For example, someone has to pay National Insurance if they earn more than the limit in one pay period, even if their average earnings for the whole year are below that limit.
Why am I paying a lot of National Insurance?
The case where you are paying a lot of national insurance can take place when you are working more than two jobs.
Can I choose not to pay NI?
No, you usually don’t have to pay National Insurance, but you might still get some benefits and build up your State Pension if you’re either: an employee earning between £125 and £242 a week from one job, or self-employed and your profits are £6,845 or more a year.
