Workers will see their National Insurance (NI) payments cut from Saturday but frozen thresholds mean many are paying more in income tax. The NI rate is falling from 10% to 8% for 27 million employees across the UK – the second such cut this year.
It is worth about £450 a year to an employee on an average salary of £35,000. But a freeze in income levels at which tax is paid until 2028 will leave many with a higher income tax bill.
Many benefits are rising in line with prices, and the state pension is also set to increase. But this comes after a slew of household bills became more expensive at the start of the month. So, the financial impact can differ significantly – depending on whether people work, how much they earn, and other personal circumstances.
A fixed percentage of the money people earn from their wages is deducted in NI.
Since 6 January, millions of employees have been paying 10% on their earnings between £12,571 and £50,270. They previously paid 12%. From Saturday, they will be paying 8%.
Source: BBC
In other news – William Wragg: Tory gave MPs’ numbers to dating app contact, report says
A senior Tory has told the Times he gave the personal numbers of fellow MPs to someone he met on a dating app. William Wragg told the paper he shared the contacts, adding he was “scared” the individual had “compromising things on me”.
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