Director's NI Calculator
Work out a company director's National Insurance on the annual earnings period, including pro rata thresholds for directors appointed during the year.
Rates checked against GOV.UK on 19 October 2026 · How we check our calculators
Director's earnings
National Insurance for 2026/27
Director pays
£0.00
8% from £12,570, 2% above £50,270
Company pays
£1,135.50
15% above £5,000
- Earnings period
- Annual (52 weeks)
- Total cost to the company
- £13,705.50
- Counts as a State Pension qualifying year
- Yes
Category A (standard) NI. Income tax and dividends are separate: see the salary vs dividend calculator.
Common director salaries in 2026/27
A director for the whole year, without the Employment Allowance.
| Salary | Why this level | Director NI | Company NI | State Pension year |
|---|---|---|---|---|
| £5,000 | Secondary threshold: no NI either side | £0.00 | £0.00 | No |
| £6,708 | Lower earnings limit: counts for State Pension | £0.00 | £256.20 | Yes |
| £12,570 | Primary threshold: no employee NI | £0.00 | £1,135.50 | Yes |
| £50,270 | Upper earnings limit | £3,016.00 | £6,790.50 | Yes |
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Important Disclaimer
This tool provides indicative calculations only and does not constitute financial, accounting, tax, or legal advice. The accuracy of results depends on the accuracy of information you provide. Consult a qualified professional for complex situations.
Overview
Company directors don't pay National Insurance the way other employees do. HMRC gives every director an annual earnings period: NI is worked out on everything the company paid them in the tax year, however often they were paid. A director first appointed during the year gets a pro rata earnings period that starts in the tax week of appointment, with every threshold scaled down to match. The rates are the same as everyone else's: the director pays 8% between £12,570 and £50,270 and 2% above, and the company pays 15% above £5,000. Only the period is different. That's the difference this calculator handles, and it matters most when pay is uneven, such as a large bonus in March.
Worked Example (2026/27)
Worked Example: Salary Plus a Year-End Bonus
Scenario: a director is paid £1,000 a month and votes themselves a £20,000 bonus in March 2027. Total earnings: £32,000.
Annual earnings period (correct for a director): - Director: 8% × (£32,000 − £12,570) = £1,554.40 - Company: 15% × (£32,000 − £5,000) = £4,050
If it were worked out month by month like an ordinary employee: - April to February: £1,000 is under the £1,048 monthly primary threshold, so the director pays nothing - March: 8% × (£4,189 − £1,048) + 2% × (£21,000 − £4,189) = £587.50 - The director's NI would be £966.90 too low
That gap is why the annual period exists: a director can't cut their NI by taking pay as one large bonus. Directors can still pay NI monthly on account, but the company must recalculate on the annual basis with the last payment of the year.
2026/27 Rates & Thresholds
| Threshold or rate (2026/27) | Annual | Weekly |
|---|---|---|
| Lower earnings limit (State Pension qualifying year) | £6,708 | £129 |
| Secondary threshold (company starts paying) | £5,000 | £96 |
| Primary threshold (director starts paying) | £12,570 | £242 |
| Upper earnings limit | £50,270 | £967 |
| Director's rate | 8% to the UEL, 2% above | |
| Company's rate | 15% above the secondary threshold | |
| Employment Allowance | up to £10,500 a year |
Directors Appointed During the Year
A director first appointed during the tax year has a pro rata earnings period: the tax week of appointment plus the remaining weeks, counting 52 weeks (week 53 is ignored, unless they're appointed in it). HMRC's CA44 guide says to divide each annual threshold by 52, multiply by the weeks, and round up to the next whole pound.
For example, a director appointed on 5 October 2026 starts in tax week 27, which gives a 26-week period. Their primary threshold is £6,285, the secondary threshold £2,500 and the upper earnings limit £25,135. On £30,000 of earnings, the director pays £1,605.30 and the company pays £4,125. Resigning later in the year doesn't change the earnings period.
Choosing a Director's Salary
Three salary levels come up again and again:
- £5,000: no NI for the director or the company.
- £6,708 (the lower earnings limit): still no director NI, and the year counts towards the State Pension. The company pays £256.20.
- £12,570 (the primary threshold): no director NI and, with no other income, no income tax. The company pays £1,135.50, unless it can use the Employment Allowance.
A company whose only employee is a sole director can't claim the Employment Allowance. Salary and employer NI are deductible for corporation tax, so whether a higher salary pays off depends on the company's tax rate and the director's dividends. Compare them in the salary vs dividend calculator.
Common Mistakes HMRC Penalises
- Running a director through payroll on monthly thresholds and never doing the annual recalculation with the last payment of the year.
- Claiming the Employment Allowance in a company whose only employee is a sole director paid above the secondary threshold.
- Starting a pro rata period from the calendar month of appointment instead of the tax week, or using 53 weeks instead of 52.
- Leaving fees or bonuses out of the earnings period. Voted fees and bonuses count, as do advance payments made before they're voted.
- Assuming a director's NI stops when they resign. The earnings period stays the same for the rest of the tax year.
When to Seek Professional Advice
Speak to a payroll specialist or accountant if a director holds several directorships, is reappointed in the same year, is paid through more than one company in a group, or is on a reduced-rate or other NI category. The annual and pro rata arithmetic here follows HMRC's CA44 guide, but those cases have extra rules.
Frequently Asked Questions
How is a company director's National Insurance calculated?+
On an annual earnings period. HMRC adds up everything the company paid the director in the tax year (salary, fees and bonuses) and applies the annual thresholds once: the director pays 8% between £12,570 and £50,270 and 2% above, and the company pays 15% above £5,000. It works this way however often the director is paid.
What if a director is appointed part-way through the tax year?+
They get a pro rata earnings period from the tax week of appointment to the end of the year, counted out of 52 weeks. Each annual threshold is divided by 52, multiplied by the number of weeks and rounded up to the next pound. A director appointed on 5 October 2026 (tax week 27) has 26 weeks: a primary threshold of £6,285 and a secondary threshold of £2,500.
Can a director pay National Insurance monthly?+
Yes. Under HMRC's alternative arrangements a company can work out a director's NI each pay period like any other employee's, as payments on account. With the last payment of the tax year it must recalculate on the annual basis and collect or refund the difference.
What salary can a director take without paying National Insurance in 2026/27?+
Up to £5,000 neither the director nor the company pays NI. Up to £12,570 the director pays none, but the company pays 15% on earnings above £5,000. Earnings of £6,708 or more count as a qualifying year for the State Pension even though no director NI is paid.
Can a sole director company claim the Employment Allowance?+
No, not if the director is the only employee paid above the £5,000 secondary threshold. Once the company has another employee earning above that threshold, it can usually claim up to £10,500 a year against its employer NI.
Sources and how this calculator is checked
The rates and thresholds in this calculator come from the GOV.UK pages below. We last checked them on 19 October 2026. The calculation engine is covered by 400+ automated tests, whose expected figures come from GOV.UK worked examples and PolicyEngine UK, an open-source model of the UK tax system. Read our methodology.
- CA44: National Insurance for company directors (gov.uk)
- National Insurance for company directors (gov.uk)
- Rates and thresholds for employers 2026 to 2027 (gov.uk)
Spotted a figure that doesn't match GOV.UK? Tell us and we'll correct it.
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