National Insurance Contributions (NIC) for employees
The National Insurance rate is being reduced from 12% to 10% for employees on 6 January 2024. It will stay at this level in the 2023/2024 tax year.
Employers do not need to do anything to prepare – NIC will be automatically deducted by accounting software..
National Insurance Contributions (NIC) for self-employed
Self-employed Class 2 National Insurance contributions (currently £3.45 a week for those earning over £12,570 per year) will be scrapped in April 2024, saving sole traders around £179.40 a year.
Self-employed workers need to pay NIC for at least ten years to claim the full state pension. You may wish to make voluntary contributions to ensure you can still qualify.