Following the 2% reduction to employee national insurance in the Autumn statement 2023, the further reduction in the Spring Budget 2024 has led to a cut in taxes again for 29 million working people. 

The main rate of employee national insurance will be reduced by 2p from 10% to 8% from 6 April 2024.

Combined with the 2p cut announced in the Autumn Statement 2023, this is a tax cut worth over £900 for the average employee on £35,400 in 2024/25 – a one third reduction in the main rate of national insurance.

The government is also cutting a further 2p from the main rate of self-employed national insurance on top of the 1p cut announced in the Autumn Statement 2023, and the abolition of class 2 national insurance.

This means that from 6 April 2024 the main rate of class 4 national insurance contributions for the self-employed will now be reduced from 9% to 6%. Combined with the abolition of the requirement to pay class 2, this will save an average self-employed person on £28,000 £650 a year.

These changes have resulted in a tax cut worth over £20bn per year, the largest ever cut to employee and self-employed national insurance.