Many Brits will be receiving their first paycheck of the new year in the coming days.
05.01.2024 - 15:11 / manchestereveningnews.co.uk
Cuts to national insurance will see millions of workers earn more money on their paycheck, according to the government.
From Saturday, January 6, the main rate of National Insurance will drop from 12 per cent to 10 per cent. During his autumn statement, Chancellor Jeremy Hunt claimed this would save the average worker on a £35,400 yearly wage £450 in the following tax year.
However, not all workers will benefit in the same way. Some workers who have previously not paid National Insurance may be roped into losing some of their wage due to the payment threshold remaining frozen until 2028.
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While announcing the tax cut in the Autumn Statement, Mr Hunt said: "I would normally bring in a measure like this for the start of the new tax year in April, but instead, tomorrow I’m introducing urgent legislation to bring it in from 6 January, so that people can see the benefit in their payslips at the start of the new year."
To find out how your personal wage will be affected, our budget calculator ill tell you how much your contributing to National Insurance now, what you will contribute next year, and how much you'll save a year. All you need to do is type in your annual salary before taxes and hit 'calculate'.
Many Brits will be receiving their first paycheck of the new year in the coming days.
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Millions of employees are set for a boost in their take-home pay from this month after the main rate of class 1 National Insurance (NI) deductions was cut from 12 per cent to 10 per cent on Saturday, January 6. The change will mean an average worker on a salary of £35,400 will get a tax cut of more than £450 in 2024/25, while an employee earning £50,000 will pay £3,743 in National Insurance after the change, saving about £749.
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