[Company name]

Cuts to National Insurance rates benefit January pay packets

Talk to an expert

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

September 4, 2025
Why Systemising Your Business Could Be the Key to More Freedom

Many business owners we work with feel caught up in the day-to-day drudge. They’re handling customer queries, fixing problems, chasing invoices - and wondering how they’ll ever find the time to step back and think about where the business is heading.

Read article
September 3, 2025
How to Spot Phishing Attempts Before It’s Too Late

HM Revenue and Customs have reported that 170,000 scam referrals were made to them in the year to July 2025. Encouragingly, this is a 12% reduction on the previous year, however HMRC are warning taxpayers to take care.

Read article