National Insurance Sees a Further Reduction
The main highlight of the budget was a further 2% reduction in Class 1 employee National Insurance from 10% to 8%, effective 6th April 2024. This follows the recent reduction, announced in the Autumn Statement 2023, which reduced the main rate from 12% to 10%.
Alongside the Class 1 reduction, Class 4 NIC will also decrease by 2% from 8% to 6%, also from 6th April 2024.
High Income Child Benefit Charge Increase
In welcome news for parents, the HICBC will increase from £50,000 to £60,000 from 6th April 2024 and the taper will be extended to £80,000. It was further announced that from 2026, household income rather than individual income will be used for measuring eligibility.
