The 12% to 10% employees national insurance rate cut first announced in the Autumn Statement came into effect in January. This means that many employees will have seen a boost in their take home pay in their January pay packet.
HM Revenue and Customs launched a tool (https://www.tax.service.gov.uk/estimate-jan-24-nic-changes) that enabled workers to estimate how the changes will affect them.
The government is naturally keen to emphasise its generosity in this measure and have claimed that a household with two average earners will be starting to see a yearly benefit from the cut of almost £1,000. Naturally, how much benefit earners actually receive will depend on how near the average their earnings are.
The rate reduction only applies to employees’ national insurance, and not employers’ national insurance. This means there is no direct saving for businesses. However, with many businesses under stress to grant pay rises that will combat the increasing cost of living, the reduction may prove to be a helpful component of pay strategy.
See: https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-january-2024
The government has confirmed that regulated rail fares in England will be frozen until March 2027. The freeze, announced prior to the Budget, follows a 4.6% rise in March 2025.
Some self-employed taxpayers who filed their 2024/25 self-assessment tax return may have been incorrectly asked to pay class 2 national insurance contributions (NIC) on their SA302 tax calculation. HM Revenue & Customs (HMRC) has now confirmed that this issue has been fixed.