National Insurance Two Reductions Saving Up To £900 Per Worker £650 For Self-Employed

7th March 2024

A 2p cut in National Insurance will change the rate from 10% to 8% for 27 million workers, from April 2024.

Chancellor Hunt says this is worth £450 a year to an employee on an average salary of £35,000.

The announcement follows a previous NI cut from 12% to 10%.

The government says that when combined with the previous cut, a worker will save £900.

The chancellor is also cutting NI for two million self-employed workers from April. Their rate will fall from 8% to 6%.

This follows a previous 2p cut for this group which was announced in the 2023 Autumn Statement, but which has not yet come info effect.

The government says when combined with the earlier cut, the average self-employed person will save £650.

Since 6 January, 27 million employees have been paying 10% National Insurance contributions on earnings between £12,571 and £50,270. They previously paid 12%.

For someone on £35,000, this was worth about £450 a year.

NI on income and profits above £50,270 remains at 2%.

NI rates apply across the UK. It is not paid by people over state pension age, even if they are working.