Spring Budget on reduction of National Insurance Contribution

Spring Budget 2024 announced a reduction to the main rates of primary Class 1 and Class 4 National Insurance contributions.

From 6 April 2024, employees will pay for class 1 National Insurance contributions (NIC) at reduced rate from 10% to 8% and self-employed will pay for class 4 National Insurance Contribution at reduced rate from 9% to 6% and no longer pay for class 2 NIC.  However, for those with profits below £6,725 a year can continue to pay class 2 NIC to keep their entitlement to certain state benefits.