Following reductions to NICs announced during the Autumn Statement which took effect from January, the Chancellor again decided to focus on NICs, rather than Income Tax, during the Spring Budget. The announced changes took effect from April and include:
- A reduction in the main rate of employee NICs by 2p in the pound from 10% to 8%, when combined with the 2p cut that took effect in January, it is estimated to save the average salaried worker over £900 each year
- A further 2p cut from the main rate of self-employed NICs, on top of the 1p cut announced at the Autumn Statement, meaning the main rate of Class 4 NICs for the self-employed will reduce from 9% to 6% from 6 April 2024. Combined with the abolition of the requirement to pay Class 2 NICs, this will save an average self-employed person around £650 a year.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.