£900 Wage Boost for Millions
Millions of workers and self-employed individuals in the UK are set to receive a £900 wage boost in the coming hours. The main rate of National Insurance will be reduced from 10% to just 8% starting this Saturday, resulting in significant savings for many.
How Much You'll Save
The exact amount of savings you'll see depends on your salary. For example, someone earning an average salary of £35,000 can expect to save over £448.60 a year with this reduction in National Insurance contributions.
Online Tool for Calculating Savings
To help individuals understand how much they could save on National Insurance contributions, HMRC has launched an updated online tool. It's important to note that the savings may not be visible until May, depending on your pay schedule.
Government Statements
Prime Minister Rishi Sunak and Chancellor Jeremy Hunt have both expressed support for these cuts, highlighting the government's commitment to rewarding hard work and ending the double taxation of work in the long term.
Who Pays National Insurance?
You are required to pay National Insurance if you're 16 or older and earn above £242 a week as an employee or make a profit of more than £12,570 a year if you're self-employed. The tax is deducted from your wages each month.
NIC Thresholds and Payment Details
The threshold for National Insurance payments is currently £12,570 a year for employed workers. Self-employed individuals need to start paying when they make profits of at least the same amount. The exact amount you pay depends on your earnings and employment status.
Additional Financial Updates
In addition to the National Insurance cuts, other financial updates include rises in the National Minimum and National Living wages, as well as reforms to the high-income child benefit charge. These changes are expected to benefit many households across the UK.
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