It was announced in the Chancellor’s Autumn Statement in November 2023 that National Insurance rates were to be cut for millions of workers.
The changes to National Insurance Rates from 6th January 2024 are as follows:
Class 1 National Insurance contributions will be cut by 2%, reducing from 12% to 10%.
There will be further changes in National Insurance from 6th April 2024:
Class 4 self-employed National Insurance cut by 1%, reducing from 9% to 8%
No one will be required to pay Class 2 self-employed National Insurance contributions. This means self-employed people with profits above £12,570 will no longer be required to pay Class 2 NIC but will continue to receive access to contributory benefits including the State Pension.
Those with profits between £6,725 and £12,570 will continue to have their contributions ‘treated as paid’ and get access to contributory benefits including the State Pension without paying Class 2 NIC as they do now.
Those with profits under £6,725 and others who pay Class 2 National Insurance contributions voluntarily to get access to contributory benefits including the State Pension will continue to do so.
