If you’re wondering what the National Insurance thresholds are, you’re not alone. This is one of the most searched payroll questions by UK employers, and for good reason. National Insurance thresholds determine when you and your employees start contributing to National Insurance, how much you need to pay, and how you stay compliant with HMRC.
At DCS Payroll, we support businesses across the UK, including clients in Sunderland and Glasgow, by keeping their payroll accurate, up to date and fully aligned with current legislation. Understanding National Insurance thresholds is key to getting payroll right, which is why we’ve broken it down clearly below.
What Are the National Insurance Thresholds?
• The Lower Earnings Limit (LEL) is the point at which an employee’s earnings start to count towards benefits like the state pension, though no deductions are taken yet.
• Once the employee’s income reaches the Primary Threshold (PT), Class 1 National Insurance contributions begin.
• The Secondary Threshold (ST) is when an employer begins paying their share of National Insurance.
• Finally, earnings above the Upper Earnings Limit (UEL) are still subject to employee contributions, but at a lower rate.
For any employer who needs to know what the National Insurance threshold is, these four figures form the foundation of accurate payroll calculations.
National Insurance Threshold UK: 2025/26 Figures
For the 2025/26 tax year, the National Insurance thresholds currently stand at:
• Lower Earnings Limit (LEL): £125 per week
• Primary Threshold (PT): £242 per week
• Secondary Threshold (ST): £96 per week
• Upper Earnings Limit (UEL): £967 per week
These thresholds apply to most employees but may vary for those under 21 or apprentices under 25. In these cases, employers may not be required to pay National Insurance. At DCS Payroll, we ensure your payroll system correctly applies these conditions to every member of your team.
Why Accurate Thresholds Matter
Applying the correct threshold for National Insurance matters for both legal compliance and employee trust. If thresholds are applied incorrectly, you could end up underpaying or overpaying National Insurance. This may lead to penalties from HMRC or confusion among staff when their payslips do not match expectations.
Using the correct National Insurance threshold UK figures also ensures you are forecasting employment costs accurately. Many businesses rely on their payroll data to plan ahead, manage tax liabilities and remain efficient. If you’re unsure whether you’re using the latest thresholds, that’s where DCS Payroll comes in.
How DCS Payroll Helps
At DCS Payroll, we work with employers across the UK to simplify payroll and remove the risk of costly mistakes. From our offices in Sunderland and Glasgow, our team handles full payroll management, including the correct application of all National Insurance thresholds.
Our payroll system is regularly updated to reflect new HMRC guidance and legislation. Whether you pay your employees weekly, monthly or on variable contracts, our process ensures that National Insurance contributions are applied accurately. We also manage Real Time Information (RTI) submissions, support auto-enrolment compliance and provide detailed reporting for your records.
Our clients never have to worry about the National Insurance thresholds or whether they’ve been applied correctly. We handle that as part of our everyday service.
Support for Every Business Size
Whether you’re a new business in Glasgow with a handful of employees or a growing team in Sunderland looking for a more reliable payroll partner, DCS Payroll offers services tailored to your needs. We work with companies across many sectors, providing affordable, accurate and dependable support.
We also take care of special employee groups such as apprentices and younger workers, applying the right rates for every individual. You do not need to memorise the guidance as our system and people do the hard work for you.
Final Thoughts
Many employers still find themselves searching online to understand what the National Insurance thresholds are or whether they’ve applied them correctly. While the rules may seem complicated, they are crucial to getting payroll right and keeping your business on the right side of HMRC.
With DCS Payroll, you get clarity, compliance and confidence. Our team takes care of everything from the moment you run payroll to submitting reports, so you can focus on your business without worrying about thresholds or errors.
Contact DCS Payroll today to find out how we can help you apply the correct National Insurance thresholds, reduce risk and save time on payroll management.
