The National Insurance Contributions (Reduction in Rates) Bill has now passed through both Chambers of Parliament and is currently awaiting Royal Assent.

The Bill was introduced to Parliament on 23 November 2023 and would implement three changes to National Insurance contributions (NICs’), as announced by the Chancellor, Jeremy Hunt in the 2023 Autumn Statement. These changes are:

  • A cut in the main rate of National Insurance paid by employees from 12% to 10% - would apply from 6 January 2024.
  • A cut in the main rate of National Insurance paid by the self-employed from 9% to 8%. (Primary Class 2 NICs’) – would apply from 6 April 2024.
  • Cancelling the requirement of the self-employed to pay the flat rate NICs charge which applies when someone’s annual profit exceeds a set threshold (currently £12,570) – would take effect from 6 April 2024.

These measures would extend and apply to the whole of the UK. For more information, please refer to this link.