From 6 April 2026, the UK’s annual National Insurance reset takes effect. The new regulations set the Class 2 weekly rate at £3.65 and lift the small profits threshold to £7,105, while voluntary Class 3 rises to £18.40. The instrument applies in Great Britain with matching provisions for Northern Ireland. (legislation.gov.uk)

For payroll teams, the Lower Earnings Limit rises to £129 a week, while the main Class 1 thresholds and rates carry over from last year. Employers continue to pay 15% secondary Class 1 NICs on earnings above the £96-a-week secondary threshold; the employee primary threshold stays at £242 a week. (gov.uk)

The regulations also extend the employer zero-rate NICs for hiring qualifying armed forces veterans for two more tax years, from 6 April 2026 until 5 April 2028. The Government Actuary notes the changes are part of the routine re-rating and that movements in the Lower Earnings Limit and Small Profits Threshold are not expected to raise Fund income in 2026–27. (gov.uk)

What this means in practice: the new £129 LEL matters for low-hours staff. An employee paid below the LEL in a week gets no National Insurance credit for that week; pay at or above the LEL but below the primary threshold still generates a credit without employee NIC being deducted. Keeping part‑time hours just above the LEL can therefore protect state pension records without increasing staff deductions. (gov.uk)

A quick sense‑check using the National Living Wage from 1 April 2026 (£12.71 for ages 21+): ten hours in a week is £127.10 (below the LEL, no credit), whereas eleven hours is £139.81 (above the LEL, credit but no employee NIC due). Small scheduling tweaks can materially change outcomes for staff without moving gross pay bands. (gov.uk)

For sole traders, two levers move on 6 April. First, the small profits threshold rises to £7,105. Second, the Class 2 rate increases to £3.65 a week. Many self‑employed with profits at or above the threshold see their Class 2 position ‘treated as paid’ for contributory benefits, so no cash is due; those with lower or fluctuating profits may choose to pay Class 2 to protect entitlement. (legislation.gov.uk)

The pound‑and‑pence change is modest but worth budgeting: £3.65 a week implies £189.80 for a full year if you opt to pay Class 2, up £7.80 versus 2025/26. For voluntary Class 3, the new £18.40 weekly rate means £956.80 to fill a complete missing year; check your NI record before paying to avoid topping up years that already qualify. (legislation.gov.uk)

Overseas workers and expats should note a significant rule change: from 6 April 2026 you will no longer be able to pay voluntary Class 2 for periods abroad; from 2026/27 onwards only Class 3 will be available for those years. Factor the higher Class 3 cost into long‑term state pension planning. (gov.uk)

On veterans’ relief, the zero secondary NIC applies for the first 12 months of a qualifying veteran’s civilian employment, up to the veterans’ upper secondary threshold (£50,270 a year). Use category letter V and retain evidence of eligibility. With the relief now running to April 2028, it is a practical hiring incentive for SMEs planning headcount. (gov.uk)

For finance directors, the employer NIC framework remains demanding. A 15% rate above £96 a week is now embedded across 2026/27, so headcount budgets, overtime approvals and bonus timing deserve a fresh look. Payroll software should be updated to the 6 April rates and thresholds; HMRC’s published tables confirm the values across weekly, monthly and annual bases. (gov.uk)

Behind the scenes, the Treasury has authorised payments of up to 5% of estimated benefit expenditure into the National Insurance Funds for 2026/27. It is a standard backstop to manage benefit flows rather than a signal of immediate rate changes for businesses or workers. (legislation.gov.uk)

What to do now: employers should map roles paid near the new £129 LEL, brief managers on the NIC credit implications for part‑timers, and screen vacancies for potential veteran hires to capture the year‑one saving. Sole traders should refresh 2026/27 cashflows using the new Class 2 and Class 3 figures and review NI records before making any voluntary top‑ups. (gov.uk)