In collaboration with Sage, Alex White shares insights on National Insurance for 2024

Following recent announcements about changes to National Insurance, North West Hub Managing Partner Alex White was invited by integrated accounting, payroll, and payment systems provider Sage to share his insights, alongside other experts in the field. We take a quick look at Alex’s highlights below and you can read the full article here .

Work with your accountant

Alex’s key advice to clients was to make sure they had good communication with their accountant or payroll provider:

“Employers have been in a tight corner to update payroll systems in time. Changing software systems is rarely an overnight fix, making it costly and time-consuming. Also, the reduction could cause a sharp increase in queries if employees need refunds for NICs applied incorrectly.?

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“To alleviate the administrative burden, companies should communicate clearly with their accountant or payroll provider to understand the pros and cons of the changes. This is especially important as the Spring Budget may bring more new challenges to business owners.”?

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Key points about National Insurance changes?

In 2024, the UK government made big changes to National Insurance affecting both employees and the self-employed. Starting January 6, 2024, employees now pay a lower rate, dropping from 12% to 10%, potentially saving those earning over ￡12,570 about ￡450 per year. Self-employed individuals also benefit from a reduction in Class 4 NICs from 9% to 8%, and most won't have to pay Class 2 anymore, potentially saving an average self-employed person ￡350 a year if they earn ￡28,200.?

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Thank you, Alex, for showcasing the expertise we offer our clients as their trusted advisors to help them navigate these changes smoothly.?

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