Millions of workers to see boost in wages after National Insurance change

It comes after the main rate of employee national insurance was cut from 10 per cent to 8 per cent on April 6 - the first day of the new tax year. The government claims this will see an average worker on £35,400 save more than £900 a year when combined with a previous cut last January.

Meanwhile, the main rate of self-employed national insurance has also been slashed. The main rate of Class 4 NI contributions has been reduced to 6 per cent while the requirement to pay Class 2 has been abolished - supposedly saving a self-employed worker earning £28,000 around £650 a year.Prime Minister Rishi Sunak said: “Hard work is one of my core values, and the progress we have made on the economy means we can reward work with a tax cut worth £900 for the average earner.

However, some have claimed a freeze on income tax bands is equivalent to a 'stealth tax'. As a result, some people have been warned they may be worse off as they will be pulled into higher tax brackets over time when their pay increases. The standard personal allowance is £12,570, which is the amount of income that someone does not have to pay tax on.

Rachel Reeves, Labour’s Shadow Chancellor, said: “Every time Rishi Sunak goes on the television claiming he is cutting taxes, he is insulting the intelligence of hard-working families.”

İnsurance İnsurance Latest News, İnsurance İnsurance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Millions of workers to receive national insurance cutMillions of workers will receive a national insurance cut as the new tax year gets underway, helping to ease some of the strain on household budgets.
Source: Glasgow_Times - 🏆 76. / 59 Read more »

National Insurance calculator - how much extra you'll get paid after second cutChanges to National Insurance will see a boost to many workers' wages this month
Source: MENnewsdesk - 🏆 23. / 69 Read more »

27 Million Workers to Receive National Insurance CutAn estimated 27 million workers will receive a National Insurance (NI) cut when the 2024/25 tax year starts this weekend, which could help boost household budgets during the ongoing cost of living crisis.
Source: Daily_Record - 🏆 9. / 89 Read more »

Millions of workers set for £450 wage boost within weeksChanges to national insurance will means some extra cash for British workers
Source: MENnewsdesk - 🏆 23. / 69 Read more »

Scottish Workers to Lose More Money from Payslips Due to New HMRC RuleScottish workers will be affected by a new HMRC rule, resulting in them losing more money from their payslips compared to English workers. Tax changes implemented on April 6, 2024, will reduce Income Tax for Scottish workers and National Insurance rates for all UK workers. However, English workers will benefit from additional boosts and better income tax thresholds, while Scottish workers will still lose out on earnings above £28,000.
Source: leedslivenews - 🏆 118. / 51 Read more »

Energy Price Cap Drops and National Insurance Cut Benefit HouseholdsThe energy price cap is set to drop on 1 April, saving households £238 a year. Additionally, the National Insurance cut will benefit 29 million workers, saving them £900 a year. However, those earning over £60,000 may be worse off due to frozen income tax thresholds.
Source: The Yorkshire Post - 🏆 39. / 66 Read more »