Press release
22 November 2023
Rachel McEleney, associate tax director at Deloitte, commented:
“The Chancellor announced that the rate of national insurance payable by employees on earnings between £1,048 and £4,189 per month will reduce from 12% to 10% from 6 January 2024. This will result in the individual’s national insurance deductions reducing by up to £62.82 per month.
“It also means that a minimum wage worker earning £1,600 per month will save just over £11 a month. The 2% rate that applies to earnings above £4,189 per month remains in place. The thresholds remain unchanged.
“Although there had been rumours of national insurance reductions, the speed and size of the change was a surprise. The cost of this measure comes in at nearly £9bn per year, making it by far the most expensive announcement in today’s Autumn Statement.
“The Chancellor also announced that the rate of national insurance for the self-employed for profits between £12,570 and £50,270 will reduce from 9% to 8% from 6 April 2024. The rate on profits above £50,270 remains at 2%. Additionally, Class 2 national insurance, which is currently a flat weekly amount of £3.45, will be abolished.
“These changes create a saving of up to £556.40 in 2024/25 compared to 2023/24. Those who pay voluntary Class 2 contributions to maintain their national insurance record will still be able to do so from 6 April 2024. The amount payable is frozen at its current level of £3.45 rather than increasing with inflation.”
@DeloitteUK for live comment
Deloitte spokespeople
Deloitte has a range of spokespeople available to comment on today’s Autumn Statement. They can be reached on 020 7007 3333 or 0207 303 5054 or one of the following numbers:
• Ian Stewart - chief economist (07774 337 581)
• Amanda Tickel - head of tax policy (07920 270 964)
• Rachel McEleney - personal tax (07826 891 752)
• Alison Lobb - corporate tax (07768 178264)
• Michael Nicolaides - employment tax (07586 511 104)
• Richard Johnson - business rates (07774 337 581)
About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.
The information contained in this press release is correct at the time of going to press.
For more information, please visit www.deloitte.co.uk.