The Chancellor has confirmed in his Spring 2024 budget that Class 1 Employee National insurance contributions (NICs) will be cut from 10% to 8% on earnings of between £12,570 and £50,270 a year.
This is the second cut to national insurance this calendar year – it was cut from 12% to 10% on 6 January 2024, as announced in the Autumn 2023 Statement. You don’t have to pay national insurance on earnings below £12,750, while there’s no change to the 2% national insurance rate on earnings over £50,270.
If you are an existing customer, this will of course be implemented by the WwS payroll team for April’s salaries, so if your staff ask you why their net (take home) salary has increased it will no doubt largely be due to the above. Do feel free to reach out to us for any further information.