Budget 2024: Another cut in employee National Insurance

The main rate of primary class 1 National Insurance contributions is to be reduced by two percentage points from 10% to 8% from 6 April 2024 the chancellor announced in his 2024 Budget.

For the self-employed the main rate of Class 4 National Insurance contributions will also be cut by two percentage points from 8% to 6% from 6 April 2024.

HMRC says that technical specifications for payroll software companies will be published shortly.

In addition later this year there will be a consultation on how the government will deliver the abolition of class 2 National Insurance contributions.

Tom Minnikin partner at Forbes Dawson said: ‘For employed earners on an average salary of around £35 000 the cut is worth approximately £450 and is on top of an identical rate reduction last November. However the measure does nothing to benefit pensioners and those that...