Changes to National Insurance contributions for the Self Employed from April 2024

Changes to National Insurance contributions for the Self Employed from April 2024

In the 2023 Autumn Statement, The Chancellor abolished Class 2 National Insurance contributions (NICS) for self-employed workers and cut the rate of Class 4 NICs for the tax year starting April 2024.

At the moment, self-employed workers pay £3.45 a week in Class 2 NICs, which will be abolished from the new tax year on 6 April 2024, although they will continue to receive access to contributory benefits including the state pension.  

In addition, from April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and as no self-employed person will have to pay Class 2 NICs, the average saving for a self-employed person earning £28,200 a year will be £350 in 2024-25 tax year.

Class 4 NICs will be reduced to 8% on profits between £12,570 and £50,270. The rate remains at 2% on profits over £50,270.