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Savings in NIC for the self employed from 6 April 2024

Sasha Owen
NIC

Self-employed individuals pay Class 2 and Class 4 NIC and changes come into effect from 6 April 2024

Class 2 NIC will be abolished from 6 April 2024. Class 2 is currently is £3.45 per week where earnings exceed £12,570. This will save £179.40 for 2024/25 onwards and you will have credits for your national insurance contributions for your state pension.

You can still pay voluntary Class 2 NIC if your earnings are below £6,725 a year.

The current rate of Class 4 NIC is 9%: this reduces to 8% from 6 April 2024. Class 4 NIC is due on earnings between £12,570 and £50,270. The  rate for earnings over £50,270 remains at 2%.

If you have taxable self employed earnings excess of £50,270 the reduction in your NIC liability from 6 April 2024 will be £377 per year add to this the Class 2 saving then it’s an overall saving of just over £550.

There is more information on the HMRC website here or contact Sasha here

HMRC, Hypnotherapy and Psychotherapy, National Insurance, self assessment, therapists

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Sasha Owen
Sasha Owen BSc FCA qualified as a Chartered Accountant in 1983 and has been in practice as an accountant since 1987. If you think Sasha has the conventional image of an accountant then you couldn’t be further from reality. Sasha is a Reiki Master, loves the arts, music and theatre; having been on stage herself and worked backstage she really does have a deep understanding and love for the arts and alternative therapy world.

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