Virgo Associates

Payroll reminder – National Insurance rate reducing from 6 April

Talk to an expert

From 6 April 2024, the 2% cut in employee national insurance contributions will come into effect. Employees will now be deducted 8%, rather than 10%, on monthly earnings between £1,048 and £4,189. A 2% deduction on earnings above this amount continues to apply.


There is no change to the rate of employers’ national insurance, which stays at 13.8% on monthly earnings above £758. 


It is important that your payroll software is up to date so that it deducts the right amount of national insurance from your staff.


You may need to check with your payroll software provider, or you may need to update your software to make sure that the calculations will be made correctly.


If you need any help with this or any other aspect of your payroll, please call us. We will be happy to help you!


See: https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-april-2024/reduction-to-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions

July 3, 2025
New Industrial Strategy to Slash Energy Bills and Back British Business

The UK Government has launched a major 10-year Industrial Strategy aimed at cutting business costs, creating over 1.1 million good skilled jobs, and making the UK a world leader in clean, competitive industries.

Read article
July 2, 2025
Earning Extra Income? You Might Need to File a Tax Return – Here’s What to Know

If you earn extra income from a side hustle, you could be legally required to register for Self Assessment and complete a tax return - and it’s better to get ahead of it now, rather than wait until the January deadline.

Read article