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NICs Bill published

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The UK government has published a bill to bring forward the changes to National Insurance contributions first announced at Autumn Statement 2023. The National Insurance Contributions (Reduction in Rates) Bill will make the following changes:

  • reduce the main Class 1 primary percentage from 12% to 10% with effect from 6 January 2024 (and also reduce the special ‘married women’s reduced rate’ by two percentage points to 3.85%);
  • reduce the main Class 4 percentage from 9% to 8% with effect from 6 April 2024; and
  • remove the requirement to pay Class 2 contributions with effect from 6 April 2024.

The bill also sets out various transitional provisions, including for the calculation of annual maximum contributions for 2023/24, given that the main Class 1 rate changes part way through the tax year.

The government has also issued Budget Resolutions which will be considered in the House of Commons until Monday 27 November 2023, with a Finance Bill expected to be published shortly after.

Issue: 1642
Categories: News
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