National Insurance rate changes

National Insurance rate changes

National Insurance rate changes took effect on the 6th of April 2024.  This is how they affect you if you are Self Employed.

Self-employed National Insurance rate changes

The National Insurance contribution rates for the self-employed across the UK were cut by a further 2 pence at Spring Budget 2024, on top of the 1 pence cut to 8% announced at Autumn Statement 2023 — this means that from 6 April 2024, the main rate of Class 4 National Insurance contributions for the self-employed is 6%

These changes come after those announced at Autumn Statement 2023, which were:

  • abolition of the requirement to pay Class 2 National Insurance contributions
  • self-employed people with profits above £12,570 are no longer be required to pay Class 2 National Insurance contributions, but will continue to receive access to contributory benefits including the State Pension
  • those with profits between £6,725 and £12,570 will continue to get access to contributory benefits including the State Pension without paying National Insurance contributions, as they will be treated as paid as long as they have registered as self employed
  • those with profits under £6,725 and those who pay Class 2 National Insurance contributions voluntarily to get access to contributory benefits including the State Pension, will continue to be able to do so — the weekly rate they pay will be frozen at £3.45 for 2024 to 2025, rather than rising by the Consumer Price Index (CPI) to £3.70
  • the Small Profits Threshold — the point at which the self-employed start to receive National Insurance credits has been frozen at £6,725

Most people pay Class 2 and Class 4 National Insurance through Self Assessment.

The government will consult on further details of the Class 2 reform later this year.

Read more information about Class 2 National Insurance contributions and rates.

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