National Insurance Contributions (Reduction in Rates) Act 2023
National Insurance Contributions (Reduction in Rates) Act 2023
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Overview of the Act
Reproduced verbatim from the Explanatory Notes published with the Act on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). Explanatory Notes are prepared by the responsible government department and are not part of the Act.
This Act introduces a cut in the rate of primary (employee) Class 1 National Insurance contributions (NICs) from 12% to 10% and a cut in the rate of self-employed Class 4 NICs from 9% to 8% with related consequential changes. The Act also includes provisions to remove the liability of self-employed persons to pay Class 2 NICs for those with profits above £12,570 per annum, whilst maintaining access to contributory benefits. The Class 1 NICs rate cut takes effect from 6 January 2024. The Class 4 NICs rate cut and provisions relating to Class 2 NICs will take effect from 6 April 2024.
Type: UK Public General Act
Year and chapter: 2023 c. 57
Royal Assent: 2023-12-18
Last ingested: 2026-06-12 from legislation.gov.uk. Acts commence section by section — check the official text for commencement orders.