Originally introduced to Parliament on 7 March 2024 (the day after Spring Budget 2024) as the National Insurance Contributions (Reduction in Rates) (No. 2) Bill, the legislation was fast-tracked through the Parliamentary process without amendment.
The Act makes the following changes with effect from 6 April 2024:
reduces the main primary rate of Class 1 NICs to 8% (from 10%, which had applied since 6 January 2024); and
reduces the main Class 4 rate to 6% (from 9%, superseding the previous cut to 8% which otherwise would have applied from 6 April 2024).
The annual maxima calculations are also adjusted accordingly.
Originally introduced to Parliament on 7 March 2024 (the day after Spring Budget 2024) as the National Insurance Contributions (Reduction in Rates) (No. 2) Bill, the legislation was fast-tracked through the Parliamentary process without amendment.
The Act makes the following changes with effect from 6 April 2024:
reduces the main primary rate of Class 1 NICs to 8% (from 10%, which had applied since 6 January 2024); and
reduces the main Class 4 rate to 6% (from 9%, superseding the previous cut to 8% which otherwise would have applied from 6 April 2024).
The annual maxima calculations are also adjusted accordingly.
