Global Daily Tax News, UK To Cut Social Security Levies Next Year, (Nov 30, 2023)

At Autumn Statement 2023, the UK Government announced that the rate of Class 1 National Insurance contributions (NICs) for employees will be reduced from 12 percent to 10 percent from January 6, 2024.

The Government also announced a reduction in the rate of Class 4 NICs for the self-employed from nine percent to eight percent. Additionally, it announced that the self-employed will not be required to pay Class 2 NICs on their profits without losing entitlement to contributory benefits. The reforms to NICs to the self-employed will be implemented from the start of the new tax year on April 6, 2024.

Personal income tax rates remain unchanged for 2023/24, at 20 percent, 40 percent, and 45 percent.

The 20 percent rate applies to income up to GBP37,700, with the higher rate applying from GBP50,270, unchanged from 2022/23. The additional rate applies to taxable income exceeding GBP125,140. The personal allowance is GBP12,570, also unchanged.