Both Finance Bill 2024/25 and The National Insurance Contributions (Secondary Class 1 Contributions) Bill continue their passage through parliament.
Finance Bill 2024/25
Committee of the whole House for the Finance Bill took place last month on 10 and 11 December. The Bill is therefore currently at Committee stage with the next stage of its progress being scrutiny by the Public Bill Committee. This is expected to have concluded by 4 February 2025. In preparation for this, last month the Government published proposed amendments to the Bill and associated updated explanatory notes.
A meeting took place with HMRC on 18 November to discuss the changes to the taxation of non-UK domiciled individuals which are contained in the Bill. The Institute was in attendance at that meeting the minutes from which have been published on GOV.UK.
The National Insurance Contributions (Secondary Class 1 Contributions) Bill
This Bill implements the changes to employers National Insurance Contributions (NICs) from 6 April 2025 as announced in the Autumn 2024 Budget. It is now at Committee Stage in the House of Lords.
The Bill provides for the 1.2 percent increase in employers NICs from 13.8 percent to 15 percent and the reduction in the secondary threshold to £5,000. It also increases the annual employment allowance (which currently reduces the employer’s NIC liability of eligible employers by up to £5,000) to £10,500 and removes the qualifying requirement to have a total secondary Class 1 NICs liability of less than £100,000 in the prior year.
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