2023 Autumn Statement – changes to National Insurance
Chancellor Jeremy Hunt has given his Autumn Statement today, including a number of changes to National Insurance contributions for both employees and for the self-employed.
The standard rate of NI for employees (Class 1) will be reduced with effect from 6th January 2024 (i.e., before the start of the next tax year on 6th April), from its current 12% to a lower 10%. This rate of NI is paid by employees earning more than £12,570. The rate you pay on earnings over £50,270 will remain at 2%. This change could save employees up to £754 per year.
The self-employed will also benefit from 6th April, with their (Class 4) NI rate being reduced from 9% to 8%, and Class 2 NI (£3.45 per week) being abolished.
If you’d like to see how much of a difference the NI change will make to your payslip from January, The Salary Calculator has been updated with the new NI rates, which are displayed in the results table in an extra “From January 2024” line. I hope that you find it helpful!
None of the content on this website, including blog posts, comments, or responses to user comments, is offered as financial advice. Figures used are for illustrative purposes only.
2 Comments to 2023 Autumn Statement – changes to National Insurance
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Hey,
Just a request for additional functionality for the take home salary calculator – An option to define whether the pension contributions are deducted after tax or before tax. This is quite common across company pension schemes.
Cheers!
This seems to be increasingly common for company pension schemes and I need to update the site to make it easier to do. Currently you can do it by choosing a Personal Pension on the pension tab – this gives you the results you expect although I realise it is not intuitive for an employer pension!