Tax & Pay
Employer National Insurance Contributions 2026
In force
6 April 2026
Applies to
All UK employers paying staff above the Secondary Threshold
Employer (Class 1 secondary) NICs apply on earnings above the Secondary Threshold. The threshold and rate changed from April 2025 onwards.
Key Points
- Secondary Threshold reduced from April 2025 (impact carried into 2026)
- Employer NIC rate uplift announced in Autumn Budget 2024
- Employment Allowance increased to offset some of the impact
- Apprentices under 25 and veterans retain reliefs
Practical Steps For Your SME
- Check Employment Allowance eligibility (must not be £100k+ NIC liability prior year)
- Re-tender pricing where staff costs are a major component
- Consider salary sacrifice arrangements for pensions to reduce NIC base
- Update budgets and forecasts before payroll cutover
Penalties
HMRC interest and penalties of up to 100 percent of unpaid NICs.
Free Resource
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