Around 27 million will benefit from the National Insurance cut, announced in today’s Autumn Statement, which will it drop by 2 percentage points from 12% to 10% from 6 January 2024.
Currently, National Insurance is charged at 12% for your earnings between £12,571 and £50,271, and 2% on anything above that.
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How much will the National Insurance cut save you?
| Salary | Current total National Insurance cost | National Insurance cost from January 2024 | Difference |
|---|---|---|---|
| £20,000 | £891.60 | £743.00 | £148.60 |
| £30,000 | £2,091.60 | £1,743.00 | £348.60 |
| £40,000 | £3,291.60 | £2,743.00 | £548.60 |
| £50,000 | £4,491.60 | £3,743.00 | £748.60 |
| £60,000 | £4,718.60 | £3,964.60 | £754.00 |
| £70,000 | £4,918.60 | £4,164.60 | £754.00 |
| £80,000 | £5,118.60 | £4,364.60 | £754.00 |
| £90,000 | £5,318.60 | £4,564.60 | £754.00 |
| £100,000 | £5,518.60 | £4,764.60 | £754.00 |
How much will self-employed people save?
| Salary | Current Class 2 and Class 4 cost | Class 2 and Class 4 cost from April | Cost saving |
|---|---|---|---|
| £20,000 | £848.10 | £594.40 | £253.70 |
| £30,000 | £1,748.10 | £1,394.40 | £353.70 |
| £40,000 | £2,648.10 | £2,194.40 | £453.70 |
| £50,000 | £3,548.10 | £2,994.40 | £553.70 |
| £60,000 | £3,767.00 | £3,210.60 | £556.40 |
| £70,000 | £3,967.00 | £3,410.60 | £556.40 |
| £80,000 | £4,167.00 | £3,610.60 | £556.40 |
| £90,000 | £4,367.00 | £3,810.60 | £556.40 |
| £100,000 | £4,567.00 | £4,010.60 | £556.40 |
What is National Insurance and why do I pay it?
| NICs Primary Threshold / Lower Profits Limit | £12,570 (annual) |
|---|---|
| Class 1 NICs Main Rate (from 6 January 2024) | 10% |
| Class 4 NICs Main Rate | 8% |
| Lower Earnings Limit | £6,396 (annual) |
| Small Profits Threshold | £6,725 (annual) |
| Class 2 Rate (for those paying voluntarily) | £3.45 (per week) |
| Class 3 Rate | £17.45 (per week) |
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