Within weeks, millions of UK workers will receive a £450 pay increase: tax cut
In less than a month, millions of workers in the UK will see an increase in pay of hundreds of pounds.Within weeks, millions of UK workers will receive a £450 pay increase: tax cut
It follows the confirmation by Chancellor Jeremy Hunt in his Spring Budget of an additional 2p cut to National Insurance. The government estimates that an individual earning £35,000 on average could save more than £448.60 annually.
Those making £50,000 or more, however, might receive an additional £750. Mr. Hunt affirmed that the reduction in National Insurance will take effect on April 6.
When he announced the policy to the House of Commons, he said, “As of April 6, employees’ National Insurance will be reduced by an additional 2p, from 10% to 8%. Also, national insurance for independent contractors will drop from 8% to 6%.
“It means an additional £450 a year for the average employee or £350 for someone self-employed.”
The most recent decrease was possible due of “the progress we have made bringing down inflation, because of the additional investment that is now flowing into the economy, because we have a plan for better and more efficient public services, and because we have asked those with the broadest shoulders to pay a bit more” .
How much will I be saving?
Depending on your pay, the upcoming changes will save you different amounts of money.
1. Compared to January 2024 rates, if your salary is £20,000, you will have an extra £149 per year or £12.42 per month to spend.
2. Compared to January 2024 rates, if your salary is £28,000, you will have an extra £309 to spend annually, or £25.75 per month.
3. Compared to January 2024 rates, if your salary is £30,000, you will have an extra £349 to spend annually, or £29.08 per month.
4. Compared to January 2024 rates, if your salary is £40,000, you will have an extra £549 per year or £45.75 per month to spend.
5. Compared to January 2024 rates, if your salary is £50,000, you will have an extra £749 to spend annually, or £62.42 each month.
6. Compared to January 2024 rates, if your salary is £60,000, you will have an extra £754 to spend annually, or £62.83 each month.
7. The 2% national insurance rate on salaries over £50,270 will remain unchanged, meaning that salaries above this will be equivalent to £60,000.
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