National insurance changes coming into force this month – who are the winners and losers?

3 mins read

[ad_1]

While some people will be better off, others will see their budgets stretched to the max. What will these changes mean for you and who exactly will benefit?

It’s been a tough few months for many Britons, some are struggling to have any money left over as bills soar and the price of food and petrol rockets.

While the Government is still ploughing ahead with its National Insurance increase of 1.25 percent, it did offer a lifeline to the lowest paid earners last week.

Chancellor Rishi Sunak announced he was increasing the threshold at which National Insurance has to be paid by £3,000.

Mr Sunak said: “From July, people will be able to earn £12,570 a year without paying any income tax or National Insurance.”

READ MORE: PIP update: Thousands missing out on DWP benefit of £627 a month

However, the planned National Insurance increase will still go ahead despite the fact that it has been widely criticised.

It will mean National Insurance will hit 13.25 percent for people earning between £184 and £967 a week from April.

This will also apply to pensioners, in the past people who have reached state pension age have been exempt from paying National Insurance.

Yet they will be expected to pay the 1.25 percent Health and Social Care Levy if they earn more than £184 a week.

How much is National Insurance rising this month?

National Insurance will rise 1.25 percentage points from April.

The new rate of 13.25 percent will apply to people paying the Class 1 National Insurance rate on income between £184 to £967 a week (£797 to £4,189 a month).

An employee earning £20,000 a year will have to fork out an extra £130.

Anyone on a £50,000 salary will have to find an additional £505.



[ad_2]

Leave a Reply

Your email address will not be published.

Latest from Blog