Business
United Kingdom — Business: Social Security
For 6 April 2026 to 5 April 2027, category A employees pay 8% National Insurance on weekly earnings between GBP 242 and GBP 967 and 2% above, and employers pay 15%.
VerifiedGovernment / official sourceGOV.UK — National Insurance rates and categoriesLast reviewed: 2026-10-23
Why this matters
Businesses relocating to the UK need to understand the social security implications to ensure compliance with UK regulations and minimize potential tax liabilities.
Key facts
- Employee Class 1 category A: 0% on GBP 129 to GBP 242 a week, 8% on GBP 242.01 to GBP 967 a week and 2% above GBP 967 a week.
- Employer Class 1 category A: 15% on earnings above GBP 96 a week across the bands.
- Monthly equivalents are GBP 1,048 and GBP 4,189 for the employee thresholds.
- Other category letters have different rates; the page does not cover Class 2 or Class 4 for the self-employed.
Steps
- Registering for a PAYE scheme — Businesses must register for a Pay As You Earn (PAYE) scheme with HMRC to pay NICs and income tax on their employees' salaries.
- Calculating National Insurance Contributions — Businesses must calculate NICs based on their employees' earnings, using the NICs tables provided by HMRC.
- Complying with state pension regulations — Businesses must ensure that their employees meet the necessary eligibility criteria for state pensions and contribute to the system accordingly.
- Claiming tax reliefs and exemptions — Businesses may be eligible for certain tax reliefs and exemptions, such as the National Living Wage or the Apprenticeship Levy. They must ensure that they meet the necessary criteria and follow the correct procedures to claim these reliefs.