HM Treasury has set the 2026–27 National Insurance rates and thresholds and extended armed forces veterans’ relief through a statutory instrument that takes effect on 6 April 2026. The Regulations were laid on 12 January under the draft affirmative procedure. (statutoryinstruments.parliament.uk)
Following the annual re-rating, the Small Profits Threshold for Class 2 National Insurance increases from £6,845 to £7,105 for 2026–27 and the Class 2 weekly rate moves from £3.50 to £3.65. These changes apply from 6 April 2026. (gov.uk)
Voluntary Class 3 National Insurance rises from £17.75 to £18.40 per week for 2026–27, effective from 6 April 2026. (gov.uk)
For employees, most Class 1 limits remain at 2025–26 levels. The only change is the Lower Earnings Limit, which increases from £125 to £129 a week; the Primary Threshold, Secondary Threshold and Upper Earnings Limit are unchanged. (gov.uk)
Regulation 6 amends the National Insurance Contributions Act 2022 to extend the zero‑rate employer NICs for qualifying armed forces veterans to the 2026–27 and 2027–28 tax years. It also updates section 8 so that the upper secondary threshold provisions for special tax site employees and veterans continue to apply to 6 April 2026 and 6 April 2027. (legislation.gov.uk)
The Explanatory Note confirms that the upper secondary thresholds for freeport tax site employees and veterans are maintained at the same monetary level as in the previous year. (legislation.gov.uk)
Regulations 7 and 8 authorise payments into the Great Britain and Northern Ireland National Insurance Funds of up to 5 per cent of estimated benefit expenditure for 2026–27, providing a statutory grant backstop if required. (legislation.gov.uk)
The Government Actuary’s report indicates no Treasury Grant is expected to be required in 2026–27, with the National Insurance Fund projected to remain above the recommended minimum level throughout the period. (gov.uk)
Operationally, payroll systems must be updated for 6 April so the £129 weekly Lower Earnings Limit is captured in earnings assessments and contribution records. Employers applying the veterans’ relief should retain evidence of eligibility and ensure the zero‑rate is only applied within the statutory conditions in the National Insurance Contributions Act 2022.
For agents and the self‑employed, the Small Profits Threshold change alters who is treated as having paid Class 2 for benefit purposes. Since April 2024 compulsory Class 2 liability has been removed; those with profits at or above the Small Profits Threshold are treated as having paid, while those below it can opt to pay Class 2 or Class 3 voluntarily to protect entitlement. At 2026–27 rates that equates to £189.80 for a full year of Class 2 (3.65 x 52) or £956.80 for Class 3 (18.40 x 52). (gov.uk)