Employee Class 1 National Insurance reduction set for 06 January 2024.
Did you catch the latest update? The Chancellor’s recent Autumn Statement revealed a notable reduction in Employee Class 1 National Insurance rates, dropping from 12% to 10%.
What does this mean for your business and your employees?
The reduction in National Insurance costs, now standing at 10% for employees earning between £12,570 and £50,268 annually, is set to benefit your workforce significantly.
This adjustment takes effect from the payroll cycles on and after 06 January 2024. To guarantee a smooth transition, ensure that your payroll software is updated accordingly to reflect the revised threshold.
For company directors, it is crucial to note that this reduction will be applied differently. You can find detailed information about the upcoming changes in the December 2023 issue of the Employer Bulletin available on GOV.UK.