Hi

As expected, the Autumn Statement featured significant changes to national insurance that will benefit self-employed workers.

Firstly, the requirement to pay class 2 NICs will end on 5 April 2024, offering a saving of £3.45 each week. Although Jeremy Hunt described this as an abolition, the situation is a little more complicated, since those with profits of less than £6,725 may still choose to pay voluntary contributions in order to ensure contributory benefits including to a state pension. Anyone whose profits exceed £6,725 will automatically receive access to contributory benefits.

Secondly, the class 4 NIC rate for the self-employed is to be reduced from 9% to 8% with effect from 6 April 2024. 

The Chancellor was silent with regard to contributions on earnings over £50,270. It is therefore assumed that the rate remains at 2%.

Noel Guilford