NIC Thresholds and Definitions

Lower earnings level

This is the point at which employees are credited with their ‘Stamp’ – effectively paying employees NIC at 0%.

The threshold for 2025/26 is £542 per month or £6,500 annually.

Primary threshold

This is the point where actual payments of employees NIC commences, at the rate of 8%.

The threshold for 2025/26 is £1,048 per month or £12,570 annually.

Employees NIC is reduced to 2% for any income in excess of £12,570.

Secondary threshold

This is the point where employers NIC becomes payable at 15%.

The threshold for 2025/26 is £417 per month or £5,000 anually.

Self employed NIC – Class 4

Class 4 NIC is payable at the rate of 6% on profits from £12,570 to £50,270. Profitsd in excess of £50,270 are taxed at 2%.

Class 2 NIC earn entitlement to the state pension and other benefits. No payment is actually required in order to be credited with the ‘stamp’