Want to know how much the reduction in National Insurance could save you & your friends & family? The government are encouraging the sharing of this new online tool to find out.
Hey there! The Government has cut National Insurance Contributions from 12% to 10%! This saves the average worker on a £35,400 salary £450 a year! I’ve just seen how much I’m saving and you can to – click here to find out
From 6th January 2024 onwards employees will see their main National Insurance contribution (NICs) rate cut from 12% to 10%.
Those self-employed will also see a reduction in National Insurance contributions payable on your profits from April 2024. They will not be able to use this tool to get an estimate.
It is claimed that ‘this rewards hard workers & means the average employee on a £35,400 salary will save £450 a year’.
However, the tax free allowances currently remain frozen, so bringing more people into taxation from April 2024 and future years if these remain at current levels.
HM Treasury claim that the UK has the lowest personal average tax than the other G7 nations:
However, It is counter claimed that these figures apply only to an unmarried single earner with no children. It is therefore not the average personal tax rate, as a majority of people in these countries are married. For married households with children, effective tax rates are claimed to be lower in the US, Japan, and France.
OECDiLibrary – United Kingdom (2022-2023 Income tax year)
PAYadvice.UK 9/1/2024