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

May 23, 2024
Government promise to cut National Insurance confirmed

While commenting on the GDP growth and what it indicates about the economy, the Prime Minister again drew attention to National Insurance.

Read article
May 22, 2024
Are you an early bird?

HM Revenue & Customs (HMRC) have released figures showing that 295,250 Self Assessment tax returns were filed in the first week of the new tax year. Almost 70,000 were filed on the first day – April 6th.

Read article