Employer NIC Calculator 2026/27
Calculate your Employer National Insurance Contributions
Employer National Insurance Contributions (NIC) are a payroll tax paid by employers on their employees' earnings. For 2026/27, the rate is 15% on earnings above the secondary threshold of £5,000 per year.
2026/27 Employer NIC Rates
- Rate: 15% (increased from 13.8% in 2024/25)
- Secondary Threshold: £5,000 per year
- Employment Allowance: Up to £10,500
Employment Allowance Eligibility
Most employers can claim the Employment Allowance if their Employer NIC bill was less than £100,000 in the previous tax year. However, you cannot claim if you're a single-director company with no other employees.
What is the Employer NIC rate for 2026/27?
The Employer National Insurance rate is 15% on earnings above the secondary threshold of £5,000 per year. This increased from 13.8% in 2024/25.
What is the Employment Allowance?
The Employment Allowance lets eligible employers reduce their annual Employer NIC bill by up to £10,500. Most businesses with NIC bills under £100,000 in the previous year can claim it.
Do all employers have to pay Employer NIC?
Yes, all employers must pay NIC on employee earnings above the secondary threshold. However, there are exemptions for employees under 21 and apprentices under 25 on earnings up to the Upper Secondary Threshold.
How is Employer NIC calculated?
Employer NIC = (Employee earnings - £5,000) × 15%. For an employee earning £35,000, the calculation would be: (£35,000 - £5,000) × 15% = £4,500 per year.
Is Employer NIC a tax-deductible expense?
Yes, Employer NIC is an allowable business expense and can be deducted from your profits before calculating Corporation Tax or Income Tax for self-employed individuals with employees.