Commentary on provisions of Act Schedule: Transitional and consequential provisions
Paragraph 1 reduces the rate of Class 1 NICs for directors to whom regulation 8(2) to (5) of S.I. 2001/1004 applies (which also applies for Northern Ireland) to a main rate of 11.5% for the 2023-24 tax year. Class 1 NICs paid by directors are assessed on an annual basis. A blended rate has been applied to ensure consistency and fairness with in-year changes to other rates of NICs. Paragraph 1 also provides a blended rate of 5.35% for directors who have elected to pay the married women and widows reduced rate.
	Paragraph 2 amends the calculation of the annual maximum for the 2023-24 tax year, as set out in regulations 21 and 100 of S.I. 2001/1004. This calculation is assessed on an annual basis, therefore blended rates have been used to ensure consistency with in-year changes to other rates of NICs. Paragraph 3 amends the calculation of the annual maximum for subsequent tax years.
	Paragraph 4 makes consequential changes arising from clause 3 that removes the requirement to pay Class 2 NICs. It omits section 11A SSCBA 1992 (Application of certain provisions of the Income Tax Acts in relation to Class 2 contributions) and makes equivalent provisions for Northern Ireland by amending SSCB(NI)A 1992. The paragraph also makes consequential amendments to sections 141, 143 and 145 of SSAA 1992. These amendments take effect from 6 April 2024.
	Paragraph 5 provides the Treasury with a power to make consequential, transitional or saving provisions that may amend primary legislation. Regulations made under the power may apply retrospectively from 6 April 2023. Statutory Instruments made using this power are subject to the negative procedure.