Answers · UK 2025/26
Why did my National Insurance go down in April 2024?
The main employee Class 1 NI rate was cut from 10% to 8% on 6 April 2024, after an earlier cut from 12% to 10% in January 2024. The 8% rate continues into 2025/26. Self-employed Class 4 was also cut, from 9% to 6%, and Class 2 was effectively abolished.
Full answer
NI cuts in 2024 were a fiscal headline. The Autumn Statement 2023 cut Class 1 employee NI from 12% to 10% effective 6 January 2024. The Spring Budget 2024 then cut it again to 8% from 6 April 2024. The 8% rate remained in place for 2025/26 — there were no further main-rate cuts in the October 2024 Budget. Self-employed Class 4 was cut from 9% to 6% from April 2024, and the requirement to pay Class 2 NI (then £3.45/week) was removed for most self-employed people with profits above the small profits threshold, while still being credited towards State Pension. The 2% rate above the UEL/UPL is unchanged. Employees saw take-home pay rise by roughly £450 a year on £30,000 and £750 a year on £50,000 compared with 2023/24, although frozen tax thresholds claw some back through fiscal drag.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.