From 6 April 2024, the 2% cut in employee national insurance contributions will come into effect. Employees will now be deducted 8%, rather than 10%, on monthly earnings between £1,048 and £4,189. A 2% deduction on earnings above this amount continues to apply.
There is no change to the rate of employers’ national insurance, which stays at 13.8% on monthly earnings above £758.
It is important that your payroll software is up to date so that it deducts the right amount of national insurance from your staff.
You may need to check with your payroll software provider, or you may need to update your software to make sure that the calculations will be made correctly.
If you need any help with this or any other aspect of your payroll, please call us. We will be happy to help you!
See: https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-april-2024/reduction-to-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions
ICAEW Says Stability in the Tax System Needed to Support Entrepreneurship
New FCA Rules for Buy Now Pay Later
.png)