United Kingdom - Changes in national insurance contributions from 6th January 2024

Changes in national insurance contributions rates

Class 1 National Insurance Contribution rates change from 12% to 10% for Category A, F, H, M and V. This applies to earnings from primary threshold till upper earnings limit.

Class 1 National Insurance Contribution rates change from 5.85% to 3.85% for Category B and I. This applies to earnings from primary threshold till upper earnings limit.

For Directors, a new employee NI rate applies from the primary threshold till upper earnings limit from 6^th April 2023:

• 5% for NI categories A, F, H, M and V
• 35% for NI categories B and I

Earning thresholds and employer contribution rates remain same.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change