Overview of the Act
This Act introduces a cut in the rate of primary (employee) Class 1 National Insurance contributions (NICs) from 12% to 10% and a cut in the rate of self-employed Class 4 NICs from 9% to 8% with related consequential changes. The Act also includes provisions to remove the liability of self-employed persons to pay Class 2 NICs for those with profits above £12,570 per annum, whilst maintaining access to contributory benefits. The Class 1 NICs rate cut takes effect from 6 January 2024. The Class 4 NICs rate cut and provisions relating to Class 2 NICs will take effect from 6 April 2024.