The main rate of class 1 employee NICs will be reduced from 12% to 10% from 6 January 2024.
Employers should be ensuring their payroll software is amended to charge the new rate rather than the old rate, or speak to their payroll agents if they outsource this service.
It should be noted that there is some leniency on timings, to allow employers to make this change. If employers are unable to update their systems to reduce the NIC charge accordingly, then the change can be made in the subsequent months with a refund being made to employees overcharged since the change. In short, have some patience with your employer whilst they make these changes – if you are charged 12% NIC subsequent to 6 January you should certainly question this with your employer, but please give them opportunity to correct it and reimburse you in due course.
If you are a Director of a company, you should check with your accountant/payroll bureau which method of NIC calculation you are being treated under, and how the rate change will affect you. This is even more important if you are a director that has already left the role.
