NIC Rate Changes
National Insurance contribution (NIC) rate changes were announced in the Spring Statement on 6 March 2024. The changes announced are:
Class 1 NICs reduced from 10% to 8% from 6 April 2024
Class 4 NICs reduced from 8% to 6% from 6 April 2024
Class 2 NICs no longer required to be paid from 6 April 2024.
It is proposed that Class 2 NICs will be abolished in 2024. Class 2 and 3 rates remain the same and the Class 1 Lower Earnings Limit and Class 2 Small Profits threshold remains frozen. The relief for employers that hire former members of the UK armed forces has been extended to the 2023, 2024 and 2025 tax years.
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