National Insurance rate change

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On the 6 January 2024 the National Insurance rate for millions of UK workers was cut from 12% to 10%.

This  brings the main rate to its lowest level for more than twenty years. It applies to the Employees’ Class 1 National Insurance Contribution (NIC). The Employers’ NIC rates remain unchanged.

Further cuts

From April 2024, there are two more changes:

> Class 4 NIC paid by the self-employed on profits between £12,570 and £50,270 is to be cut from 9% to 8%;

> Class 2 NIC, paid by the self-employed on profits above £6,725, is to be abolished from 6 April 2024.  It should be noted that those self-employed making profits above £6,725 will not need to make voluntary payments to maintain benefits entitlements (including the state pension), those with profits under £6,725 and others who pay Class 2 NICs voluntarily will continue to be able to do so.

These changes were announced in last year’s Autumn Statement with a plan to  ‘unlock investment, reward work and grow our economy’.

Factsheet

Read more on our latest National Insurance factsheet.

Contact us

Our team are able to help if you would like advice about these or other changes coming into force in the first part of 2024.