For the 2026/27 tax year (from 6 April 2026), employer Class 1 National Insurance remains at 15% and the secondary threshold at which it becomes payable stays at £5,000 per year, continuing the changes introduced in April 2025 (up from 13.8% on a £9,100 threshold). The Employment Allowance holds at £10,500, and the previous £100,000 NIC-liability cap has been permanently removed so all eligible employers can claim it regardless of payroll size.
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UK employer NIC stays 15% on a £5,000 threshold for 2026/27; Employment Allowance £10,500
Why this matters for founders
This is the biggest cost lever for any UK founder deciding to make a first hire: NI now kicks in at just £5,000 of pay, so employing anyone at meaningful wages carries real employer cost from the outset. Eligible small companies should make sure they are actually claiming the £10,500 Employment Allowance, which can wipe out employer NIC entirely for a small team, and budget the 15% rate into every salary offer.
Source: GOV.UK / HMRC — Employer National Insurance rates 2026/27
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