Employee National Insurance - Changes from April 2024
The headline announcement for the Spring Budget 2024 is a 2% decrease in Employee NIC; employees will now pay 2% less NIC (so a new rate of 8%) on their earnings between £1048 and £4189 per month. This is a further decrease on the 2% reduction from January 2024 and the resulting saving is a further (up to) £754 annually. This means that an employee from April 2024 onwards will take home up to £1,508 more compared to April 2023.
High Income Child Benefit Charge - Changes from April 2024
There are also changes to the rules on Child Benefit. Previously, a family with one parent earning above £50,000 per year would be affected by the charge, reducing their claim to zero once their salary reached £60,000. The plan is to move to a household based system (meaning families with one high earner but overall lower household income are not unfairly penalised) but as this will take some time to implement the Government has increased the threshold for the charge to start at £60,000 with the upper taper being £80,000.
New National Minimum Wage Including Live In Employees
Finally, we wanted to re-iterate the increase to National Minimum Wage to £11.44 per hour for anyone aged 21 or over. This is now applicable to all employees, including those who are ‘live-in’, so is something really important to be aware of from the start of April. Please use our National Minimum Wage checker found in your members area to check you are paying the correct amounts from April 2024.