This is another tax year in which the Chancellor decides to change rates during the tax year rather than from the start of a new tax year.
This leads to additional complexities and anomalies, both from the end user and the software houses tasked with making the changes with very short notice. The change is that the employee’s national insurance rate drops from 12% to 10% with effect from 6 January 2024 – so a welcome few extra pounds in the take home pay.
Please ensure that you have implemented all software updates that have been provided to you by the software companies. You may like to check the pay elements in the software before running January payroll to ensure the 10% rate is shown.
Please get in touch with us if you have any queries or concerns.