NI Thresholds for Self-Employed 2025/26
| Threshold | Amount | Effect |
|---|---|---|
| Small Profits Threshold | £6,725/year | Below this, no NI; voluntary Class 2 available |
| Lower Profits Limit (LPL) | £12,570/year | Class 2 and Class 4 NI begin |
| Upper Profits Limit (UPL) | £50,270/year | Class 4 NI rate drops from 9% to 2% |
NI Thresholds for Employees 2025/26
| Threshold | Amount | Effect |
|---|---|---|
| Primary Threshold | £12,570/year | Employee Class 1 NI begins at 8% |
| Upper Earnings Limit | £50,270/year | Employee NI drops from 8% to 2% |
| Secondary Threshold | £9,100/year | Employers NI at 15% begins |
Source: HMRC / gov.uk · Rates correct for 2025/26 tax year.
These thresholds are frozen until at least April 2028 under the existing government plan, meaning more workers are pulled into NI liability as wages rise.
How the NI Threshold Has Changed
The Lower Profits Limit and Primary Threshold were raised from £9,880 to £12,570 in July 2022 — a significant change that aligned the NI threshold with the personal allowance. This gave self-employed and employed workers an additional £2,690 of NI-free income. Rates and thresholds have remained largely stable since, with the main 2025 change being the Employers NI rate increase to 15%.
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Frequently Asked Questions
FAQWhat is the NI threshold for self-employed in 2025/26?+
The Lower Profits Limit is £12,570. Self-employed profits below this level attract no Class 2 or Class 4 NI. Above it, Class 2 (£3.45/week) and Class 4 (9% up to £50,270, then 2%) apply.
Has the National Insurance threshold changed for 2025/26?+
The self-employed NI thresholds remain at the same level as 2024/25. The Lower Profits Limit is £12,570. The main change for 2025/26 was the increase in Employers NI rate from 13.8% to 15%.