Market leading insight for tax experts
View online issue

NICs (Reduction in Rates) Act 2024

printer Mail

The National Insurance Contributions (Reduction in Rates) Act 2024 received royal assent on 20 March 2024.

Originally introduced to Parliament on 7 March 2024 (the day after Spring Budget 2024) as the National Insurance Contributions (Reduction in Rates) (No. 2) Bill, the legislation was fast-tracked through the Parliamentary process without amendment.

The Act makes the following changes with effect from 6 April 2024:

  • reduces the main primary rate of Class 1 NICs to 8% (from 10%, which had applied since 6 January 2024); and
  • reduces the main Class 4 rate to 6% (from 9%, superseding the previous cut to 8% which otherwise would have applied from 6 April 2024).

The annual maxima calculations are also adjusted accordingly.

Issue: 1657
Categories: News