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From 2024 there are some changes to National Insurance which will see a little more in everyone's pay.

Class 1 National Insurance Contributions

For the majority of workers, that is those paying the main rate of National Insurance, known as class 1 the rate will reduce from 12% to 10%. The difference is quite a bit, for example;

• On a salary of £20,000 the annual saving is around £150.
• On a salary of £35,000 the annual saving is around £445.
• On a salary of £55,000 the annual saving is around £750.

It's not often the government gives us something back and no doubt it will be taken back some other way in the future but for now at least, anything extra in the pocket is welcome.

Class 2 National Insurance Contributions

Class 2 contributions are for those who are self-employed and pay a flat rate to qualify for certain benefits. From April 2024 anyone with profits that exceed £12,570 have no obligation to pay class 2. The rate of £3.45 per week will remain the same for 2024/25 rather than increasing in line with inflation.

No self-employed person is obliged to pay National Insurance.

Class 4 National Insurance Contributions

For those who are self-employed and paying National Insurance based on profits, the rate will reduce from 9% to 8%.