Employer National Insurance Rates to Decrease from 6th January 2024
During the UK Chancellor's Autumn Statement on 22nd November 2023, it was announced that the rate of National Insurance that employees pay will be cut from 12% to 10%.
So that employees see the benefits of this tax cut as soon as possible, the UK Government are seeking to implement emergency legislation so that this change to National Insurance will come into place from 6th January 2024.
The table below shows the confirmed National Insurance rates for each category in the 2023/2024 tax year, including the changes taking effect on 6th January 2024. Directors National Insurance will use an annualised rate made up of 9 months at the old rate and 3 months at the new rate for the given category.
Fourth will ensure the National Insurance Rates are updated in line with the legislation effective from 6th January 2024.
| Contribution Table Letter | Payment of earnings made on | Earnings below LEL | Earnings at or above LEL up to and including PT | Earnings above the PT up to and including UEL | Balance of earnings above the UEL |
| A (Standard) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 12% | 2% |
| A (Standard) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 10% | 2% |
| A (Standard) | Director* | NIL | 0% | 11.50% | 2% |
| B (MWRRE) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 5.85% | 2% |
| B (MWRRE) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 3.85% | 2% |
| B (MWRRE) | Director* | NIL | 0% | 5.35% | 2% |
| C (Over State Pension Age) | 6 Apr 2023 to 5 Jan 2024 | NIL | NIL | NIL | NIL |
| C (Over State Pension Age) | 6 Jan 2024 to 5 Apr 2024 | NIL | NIL | NIL | NIL |
| C (Over State Pension Age) | Director* | NIL | NIL | NIL | NIL |
| F (Freeports Standard) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 12% | 2% |
| F (Freeports Standard) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 10% | 2% |
| F (Freeports Standard) | Director* | NIL | 0% | 11.50% | 2% |
| H (Apprentice Under 25) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 12% | 2% |
| H (Apprentice Under 25) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 10% | 2% |
| H (Apprentice Under 25) | Director* | NIL | 0% | 11.50% | 2% |
| I (Freeports MWRRE) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 5.85% | 2% |
| I (Freeports MWRRE) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 3.85% | 2% |
| I (Freeports MWRRE) | Director* | NIL | 0% | 5.35% | 2% |
| J (Deferment) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 2% | 2% |
| J (Deferment) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 2% | 2% |
| J (Deferment) | Director* | NIL | 0% | 2% | 2% |
| L (Freeports Determent) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 2% | 2% |
| L (Freeports Determent) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 2% | 2% |
| L (Freeports Determent) | Director* | NIL | 0% | 2% | 2% |
| M (Under 21) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 12% | 2% |
| M (Under 21) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 10% | 2% |
| M (Under 21) | Director* | NIL | 0% | 11.50% | 2% |
| S (Freeports over State Pension Age) | 6 Apr 2023 to 5 Jan 2024 | NIL | NIL | NIL | NIL |
| S (Freeports over State Pension Age) | 6 Jan 2024 to 5 Apr 2024 | NIL | NIL | NIL | NIL |
| S (Freeports over State Pension Age) | Director* | NIL | NIL | NIL | NIL |
| V (Veterans Standard) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 12% | 2% |
| V (Veterans Standard) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 10% | 2% |
| V (Veterans Standard) | Director* | NIL | 0% | 11.50% | 2% |
| Z (Under 21 – Determent) | 6 Apr 2023 to 5 Jan 2024 | NIL | 0% | 2% | 2% |
| Z (Under 21 – Determent) | 6 Jan 2024 to 5 Apr 2024 | NIL | 0% | 2% | 2% |
| Z (Under 21 – Determent) | Director* | NIL | 0% | 2% | 2% |
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