Autumn Statement 2023

Autumn Statement 2023

National Insurance contributions (NICs) rates:

The government has proposed a reduction in the main rate of Class 1 employee NICs, lowering it from 12% to 10% starting from January 6, 2024.

Additionally, there is a planned reduction in the main rate of Class 4 self-employed NICs from 9% to 8% effective from April 6, 2024.

Furthermore, starting April 6, 2024, no individual will be obligated to pay Class 2 self-employed NICs. Here are the details of this change:

  • From April 6, 2024, self-employed individuals with profits exceeding £12,570 will be exempt from paying Class 2 NICs but will still be eligible for contributory benefits, including the State Pension.
  • Those with profits ranging from £6,725 to £12,570 will retain access to contributory benefits, such as the State Pension, through a National Insurance credit without the requirement to pay NICs, similar to the current arrangement.
  • Individuals with profits below £6,725 and those who voluntarily pay Class 2 NICs to access contributory benefits, including the State Pension, will continue to have the option to do so.
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