The autumn statement announcements should help small business owners in the shape of a national insurance abolition for class 2 and a reduction for class 4.
The abolition (although not immediate as there still exists voluntary contributions) of class 2 means anyone with profits above £12,570 will no longer be required to pay class 2 national insurance.
Those with profits between £6,725 and £12,570 will continue to get access to contributory benefits including the State Pension through a National Insurance credit without paying any NICs, as they currently do.
Any childminders below £6,725 may still choose to pay voluntary contributions to also ensure contributory benefits. The believe is that the current rate of £3.45 per week will remain in tax year 2024-2025.
Secondly, the class 4 contribution rates payable as a percentage of taxable profits, are reducing from 9% to 8% for self employed with effect from the 6 April 2024. These rates are payable between the thresholds of £12,751 and £50,270.