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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
The latest Budget was packed with policy announcements, but according to the Office for Budget Responsibility (OBR), these policies will not really change the UK’s growth outlook over the next five years.
The Government has announced a £725 million package of reforms aimed at increasing apprenticeship and training opportunities for young people. While much of the announcement centres on tackling youth unemployment, there could be benefits for small and medium-sized businesses.
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