National Insurance (NI) Changes Following The Autumn Statement 2023

• Published date: 27 November 2023
• Subject Matter: Tax, National Insurance
• Law Firm: Price Bailey
• Author: Molly Rushworth

Navigating National Insurance (NI) categories is crucial for employers to ensure accurate payroll processing. Changes were made to NI thresholds, affecting both employees and business owners/managers on 6 July 2022. In light of the Autumn Statement (22 November 2023) NI thresholds have remained the same, however NI contributions for employees have changed in a decrease from 12% to 10%.

Autumn Statement 2023*

From 6 April 2023 to 5 March 2024 the amount you can earn before you started paying NI remains as:

• '242 per week
• '1,048 per month
• '12,570 per year

Announcements in the Autumn Statement by the Chancellor have resulted in another mid-tax year change to National Insurance contributions. Whilst the NIC thresholds appear to remain unchanged, there will be a cut in employee NIC, from 12% to 10%, from 6 January 2024.

What does this mean for employees?

Here's an example:

An employee with an NIC category of A who has NICable earnings of '2,500 per month can expect to see a reduction in the amount of NIC that they pay by almost '30 per month from 6 January.

Directors NIC

We await further guidance and will update accordingly as to the calculation of directors NIC for the 2023/24 tax year. A hybrid...