Changes to National Insurance
There were several changes to National Insurance announced as part of the Autumn Statement last week.
Class 2 National Insurance
When Chancellor Jeremy Hunt announced the abolition of Class 2 National Insurance, the situation was a little more complicated than it first appeared, and some clarification may be helpful.
Whilst the mandatory payment of £3.45 per week will cease from 5th April 2024, those with profits less than £6,725 may still choose to make these contributions voluntarily to ensure they qualify for contributory benefits such as their state pension.
Any self employed person with profits exceeding the £6,725 will continue to receive access to contributory benefits.
Class 4 National Insurance
The main rate of Class 4 National Insurance contributions will be cut from 9% to 8% from the 6th April 2024.
Class 4 contributions on profits above £50,270 will continue to be calculated at 2%.
If you’re unsure of how these changes may affect you, please get in touch.
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