Payroll Pertinent Pieces from Autumn Statement

The Chancellor's recent Autumn Statement has introduced various changes which may impact your payroll. This article outlines the key changes to National Insurance and National Minimum Wage.

National Insurance

It was announced that Employee National Insurance would be reduced by 2%, effective from 6th January 2024. This reduction applies to earnings between £12,570 and £50,270 (annualised), the rate above £50,270 will remain at 2%.

In practice, this equates to a reduction of just over £450 per year for an individual on the UK’s average salary (£35,464 per annum in 2023 according to Forbes).

Please also note that with another mid-year rate change for NI, this will have further implications on the calculations for Directors NI at the end of the tax year.

Extension of NI Reliefs

There was mention of this within the statement that additional national insurance relief for veterans will be available for employers but the further details of this are still to be released.

It was also confirmed that investment zones programme in England would be extended from a period of 5 years to 10 years.

National Living Wage

The National Living Wage will be rising to £11.44 per hour from 1 April 2024, this will be for all workers aged 21 and over. Please note this higher rate applies to all workers Aged 21 now as previously this was for 23 and over, the previous band of £10.18 per hour has been amalgamated into the National Living Wage category.

Full updated rates below:

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