How much National Insurance will I pay as a director?

If you’re a company director, National Insurance works differently from someone who is self-employed. As a director, you’re treated as an employee of your company, so any salary you receive may be subject to National Insurance. Your company may also have to pay employer National Insurance contributions. This guide explains when directors and their companies pay National Insurance, how much may be due and how it is paid.

What is National Insurance and do I have to pay it?

National Insurance is a system of contributions paid to qualify for certain benefits including the State Pension.

Whether you need to pay National Insurance depends on your circumstances. For example:

employees usually pay National Insurance through their wages if they earn above the relevant threshold
employers also pay National Insurance on employees’ earnings above certain thresholds
self-employed people may pay National Insurance depending on their annual profits
some people choose to make voluntary National Insurance contributions to help protect their entitlement to the State Pension and certain other state benefits.

If you are a company director, you’re treated as an employee for National Insurance purposes. If you receive a salary from your company, you and your company may both need to pay National Insurance, depending on the amount of that salary.

Many directors also receive dividends. Dividends are not subject to National Insurance, so only salary and other earnings are used when calculating National Insurance contributions.

You’ll also need a National Insurance number so HMRC can record your National Insurance contributions and credits correctly.

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How much National Insurance will I pay?

As a company director, you are likely to have to employee National Insurance if you receive a salary, while your company may also have to pay employer National Insurance on the same salary. It is important to note that these are separate liabilities.

Many directors are paid a combination of salary and dividends. National Insurance is only charged on earnings such as salary and bonuses. Dividends are not subject to National Insurance, although they may be subject to Dividend Tax.

Employee and employer national insurance are looked at in turn below:

National insurance deductions

As a company director, you are likely to have to employee National Insurance if you receive a salary, while your company may also have to pay employer National Insurance on the same salary. It is important to note that these are separate liabilities.

Many directors are paid a combination of salary and dividends. National Insurance is only charged on earnings such as salary and bonuses. Dividends are not subject to National Insurance, although they may be subject to Dividend Tax.

Employee and employer national insurance are looked at in turn below:

Employee National Insurance

For the 2026/27 tax year, you’ll pay employee National Insurance if your annual salary exceeds £12,570.

The rates are:

8% on earnings between £12,570 and £50,270
2% on earnings above £50,270.

If your annual salary is between the Lower Earnings Limit (£6,708) and the Primary Threshold (£12,570), you won’t pay employee National Insurance, but you’ll still receive a qualifying year towards your State Pension and certain other state benefits.

Employer National Insurance

Your company may also have to pay employer National Insurance on your salary.

For the 2026/27 tax year, employer National Insurance is generally charged at 15% on earnings above the Secondary Threshold (£5,000 a year).

Employer National Insurance is a business expense, so it can normally be deducted when calculating the company’s taxable profits for Corporation Tax purposes.

How and when will I pay National Insurance?

If you’re a company director and receive a salary, your company will deduct employee National Insurance from your salary and pay it to HMRC on your behalf through the Pay As You Earn (PAYE) system, just like any other employee. The company will pay employer National Insurance separately, which is its own liability. Both are reported to HMRC as part of the company’s regular payroll submissions and payments.

Do I need to register for National Insurance?

As a company director, you don’t need to register separately to pay National Insurance. If you’re paid a salary, your company must register as an employer with HMRC and operate a PAYE payroll. Your company will use your National Insurance number to calculate and report any National Insurance contributions due.

If you don’t already have a National Insurance number, you’ll need to apply for one before you can be included on the company’s payroll.