27 million workers to land up to £754 extra as National Insurance cut TOMORROW
Steven Smith says the major change will see national insurance cut from 12% to 10% from this weekend
CASH IN POCKET: The government said the upcoming cut would offer £450 each year to an employee earning £35,400 (Image: Ezra Bailey/Getty Images)
Millions of employed workers will soon enjoy up to £754 extra each year in their take-home pay as HMRC gears up for a slash in national insurance this weekend. Chancellor Jeremy Hunt announced a NI cut from 12% to 10% in his autumn statement in November, with the change coming into effect tomorrow (Saturday, January 6).
The reduction was initially planned for the new tax year in April but was moved forward to begin this Saturday, with the Government saying it would offer an average employee earning £35,400 £450 each year. Self-employed workers will also see tax changes; from April 6, 2024, Class 4 NICs will drop from 9% to 8%, and no self-employed worker will have to pay Class 2 NICs.
The government said this would simplify the tax system and save the average self-employed individual earning £28,200 a year £350 in 2024/25. Mr Hunt, at the time of the announcement, said he'd been 'clear from the start' that he wanted to cut taxes and that 'having met our pledge to halve inflation', taxes can be cut in a 'responsible way' that 'rewards work' and grows the economy, says BristolLive.
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The government has given the following examples:
- A senior nurse with five years of experience on £42,618 will receive an annual gain of £600.
- An average full-time nurse on £38,900 will receive an annual gain of more than £520.
- An average police officer on £44,300 will receive an annual gain of more than £630.
- A typical junior doctor on £63,000 will receive an annual gain of more than £750.
- A cleaner working night shifts for £21,000 will receive a gain of £170.
- A typical self-employed plumber on £34,400 will receive an annual gain of £410.
- An average teacher on £44,300 will receive an annual gain of more than £630.
- A family with two earners on average earnings of £35,404 will be £900 better off.
- A salary of £20,000 will see £149, while £30,000 comes out at £349.
- For people on salaries of £60,000 and above, the figure will be £75.
- For those earning that amount or more as a self-employed person, it will be £556.
