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Spring Budget 2024

By HM Revenue and Customs | 7th March 2024 | News

On 6‌‌‌ ‌‌March 2024, the Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, made his Spring Budget and set out the government's plans to bring forward a series of reforms to ensure the tax system is simple, fair, keeps pace with economic developments, and supports public finances. One of the tax measures relevant to employers was on National Insurance contributions.

The government has announced a cut to the main rate of Class 1 employee NICs from 10% to 8% from 6‌‌‌ ‌‌April 2024. Taxes for the self-employed will also be cut by a further 2 pence on top of the 1 pence cut to 8% announced at Autumn Statement. This means that from April 2024 the main rate of Class 4 NICs for the self-employed will now be reduced from 9% to 6%.

The HMRC asks that you take steps now to start work with your payroll software provider, and where applicable IT delivery partners, to get ready to implement the change to Class 1 employee NICs that comes into effect from 6‌‌‌ ‌‌April 2024.

HMRC's Basic PAYE Tools product will be updated to reflect this latest change.

Further information on the NICs measures can be found here on GOV.UK.

Information on all of the measures announced can also be found on GOV‌‌‌.UK.

For an overview of all the tax legislation and rates announced, read the Overview of tax legislation and rates (OOTLAR).

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