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National Insurance update

The government is extending the NICs relief for employers of eligible veterans for one year.

The relief means businesses pay no employer NICs on annual earnings up to £50,270 for the first year of a qualifying veteran’s employment in a civilian role.

The weekly Class 2 NICs – the flat rate compulsory charge which is currently £3.45 paid by self employed people earning more than £12,570 - will be abolished from April 2024. Access to contributory benefits will be maintained and those currently paying voluntarily will still be able to do so at the same rate.

The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut by 1p, from 9% to 8% from April 2024.

Class 1 contributions for employees will be reduced from 12% to 10% from 6 January 2024.

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