Millions of workers will see a boost to their wages in the new tax year as the main rate of employee national insurance has been cut from 10% to 8%. The government claims this will save an average worker on £35,400 more than £900 a year. The main rate of self-employed national insurance has also been reduced, with the main rate of Class 4 NI contributions now at 6% and the requirement to pay Class 2 abolished. Prime Minister Rishi Sunak stated that this tax cut is a reward for hard work and is part of a plan to eventually abolish national insurance. However, some argue that a freeze on income tax bands is a stealth tax, as it may result in people being pulled into higher tax brackets over time as their pay increases. The standard personal allowance is £12,570, which is the amount of income exempt from tax.
Millions of workers will see a boost to their wages in the new tax year as the main rate of employee national insurance has been cut from 10% to 8%. The government claims this will save an average worker on £35,400 more than £900 a year. The main rate of self-employed national insurance has also been reduced, with the main rate of Class 4 NI contributions now at 6% and the requirement to pay Class 2 abolished.
Prime Minister Rishi Sunak stated that this tax cut is a reward for hard work and is part of a plan to eventually abolish national insurance. However, some argue that a freeze on income tax bands is a stealth tax, as it may result in people being pulled into higher tax brackets over time as their pay increases. The standard personal allowance is £12,570, which is the amount of income exempt from tax
Workers Wages Tax Year National Insurance Tax Cut Self-Employed Income Tax Tax Brackets Personal Allowance
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