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Common Ground News

Do I have to pay employers national insurance?

Author

Mia Phillips

Updated on February 19, 2026

Do I have to pay employers national insurance?

“All employers must pay employers national insurance, and it is illegal to deduct this from a worker's income. “The assignment rate includes employment costs such as employers' national insurance, holiday pay, apprenticeship levy, and pensions contributions.

Similarly one may ask, does my employer pay my National Insurance?

Employers are responsible for deducting income tax and National Insurance from employee's wages. The employer pays the amounts deducted to HMRC each month. Employers continue to pay National Insurance after the employee reaches the state retirement age.

Likewise, what happens if my employer doesn't pay my National Insurance? Employers will deduct tax and National Insurance from the wages they pay out. You will need to provide you National Insurance number, and if possible, your employer's PAYE reference. If your employer is not paying National Insurance to HMRC, then this could affect your benefit rights.

Similarly, can I claim back Employers National Insurance?

You can only claim against your employers' Class 1 National Insurance liability up to a maximum of £4,000 each tax year. You can still claim the allowance if your liability was less than £4,000 a year. Employment Allowance counts as de minimis state aid.

What is employer national insurance?

Employers' National Insurance is a type of Class 1 National Insurance that employers have to pay to HMRC in respect of their employees' wages. Find out more about National Insurance on our accounting glossary.

Who pays National Insurance employee or employer?

The employer pays the amounts deducted to HMRC each month. National Insurance for employees has two parts: the employee's National Insurance Contributions – a deduction from gross pay; and employer's National Insurance Contributions, a cost borne by the employer in addition to the gross pay.

Who pays the National Insurance?

You pay National Insurance contributions to qualify for certain benefits and the State Pension. You pay mandatory National Insurance if you're 16 or over and are either: an employee earning above £183 a week. self-employed and making a profit of £6,475 or more a year.

Why am I paying employers NI?

If you decide to undertake a contract via a PAYE umbrella company, you become the employee of the company, and the umbrella is your employer. By law, all employers must pay Employers' National Insurance Contributions on the salaries paid to their employees.

How is NI calculated?

If you're an employee, you'll need to pay Class 1 NICs on your earnings. In addition, your employer will be required to make a secondary contribution of 13.8% of earnings above £166 a week. There is no upper limit on employer's National Insurance (NI) payments. the rate drops to 2% of your earnings over £962 a week.

How much tax and NI does my employer pay?

Employers pay Class 1 NICs of 13.8% on all earnings above the secondary threshold for almost all employees. This rate has remained the same for several years.

How much national insurance should my employer pay?

In addition, your employer will be required to make a secondary contribution of 13.8% of earnings above £166 a week. There is no upper limit on employer's National Insurance (NI) payments. As an employee: you pay National Insurance contributions if you earn more than £166 a week.

How does Employers NI work?

Employers pay 'secondary' Class 1 National Insurance contributions (NICs) on their employees' earnings. The employment allowance reduces the amount of employer NICs payable by some businesses up to the allowance limit (currently £4,000 per year).

Why is my NI so high?

National Insurance contributions are a tax on earnings paid by employees and employers and help to build your entitlement to certain state benefits, such as the State Pension and Maternity Allowance. Unlike Income Tax, National Insurance is not an annual tax. 2% of your weekly earnings above £962.

Is employers NI tax deductible?

Employer's National Insurance is Tax Deductible
Fortunately, employer's National Insurance is a tax deductible expense for the business. For self-employed business owners this means the employer's National Insurance that they pay will reduce their own tax bills.

Who pays employers NI under ir35?

Inside IR35 within the private sector (when an agency is involved) If inside IR35, the limited company pays a deemed employment payment to the worker. This payment will have Income Tax and Employees NICs deducted and paid to HMRC. The limited company will also have to pay any Employers NI that's due.

Why do I pay two lots of national insurance?

You may be offered two different rates, one to be paid directly through the company's payroll and another, higher rate, to have your pay processed through an Umbrella Company. The lower rate will apply if you opt to be paid directly by the company because they themselves will be liable for the Employer's NIC.

Who qualifies for small employers relief?

Who qualifies as a small employer? Your company qualifies for small employers' relief if the total of your employer and employee liability for national insurance (NI) contributions was £45,000 or less in the last complete tax year prior to the employee's qualifying week, or in the case of adoption, the matching week.

Do umbrella companies deduct employers NI?

Answer: An umbrella company is an employer and, as with any other UK employer, we have a legal obligation to pay employer's national insurance contributions to HMRC. The balance is your salary which would be subject to deductions for income tax and employee's national insurance.

Can I refuse to pay national insurance?

For most people, it's against the law not to pay national insurance. Some employers may offer you a job without paying tax or national insurance (known as cash in hand). This is against the law – for both you and your employer – and you should avoid this kind of job.

What happens if you don't earn enough to pay NI?

Even if you are not earning enough to pay National Insurance and do not qualify for credits you can still take action to protect your National Insurance record. There is a voluntary category of National Insurance Contributions called 'Class 3' and the cost of Class 3 contributions is currently £14.10 per week.

Do you get fined for not paying national insurance?

If you do not pay your national insurance contributions on time you can expect to be fined.

How much do you have to earn before you pay national insurance?

As an employee: you pay National Insurance contributions if you earn more than £183 a week for 2020-21. you pay 12% of your earnings above this limit and up to £962 a week for 2020-21. the rate drops to 2% of your earnings over £962 a week.

Can you claim back national insurance?

HM Customs and Revenue will not make cash refunds of any national insurance contributions that you pay. However, your payments are added to your personal contributions record that counts towards your state pension and /or other benefits in due course.

Does an employer pay NI for someone over 65?

From state pension age, National Insurance is no longer payable, but the position can seem complex. As an employee you should stop paying National Insurance when you reach state pension age. The employer, however, still makes secondary (employer's contributions).

How much is employer NI in UK?

Employer National Insurance rates
Category letter£120 to £169 (£520 to £732 a month)£169.01 to £962 (732.01 to £4,167 a month)
A0%13.8%
B0%13.8%
C0%13.8%
H0%0%

How much is NI contributions 2019?

Class 1 National Insurance thresholds
Class 1 National Insurance thresholds2019 to 2020
Primary Threshold ( PT )£166 per week £719 per month £8,632 per year
Secondary Threshold ( ST )£166 per week £719 per month £8,632 per year
Upper Secondary Threshold (under 21) ( UST )£962 per week £4,167 per month £50,000 per year

How do I pay my National Insurance Gap?

there are gaps in your NI record for which payment can be made. you know how much you need to pay. you understand the benefits of paying. If you're unsure about any gaps in your national insurance record you should contact the National Insurance Helpline on 0300 200 3500.

How much is employers pension contribution?

Under auto enrolment legislation, the minimum workplace pension contributions are initially 2% of which at least 1% must be paid by the employer. Over time, this increases to a total of 8% of which at least 3% must be paid by the employer.

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