National Insurance cuts coming this week will see millions pay less tax - but there's a cost

manchestereveningnews.co.uk:

Millions of workers will see a cut to their National Insurance obligations this week. The main rate of National Insurance will fall from 12 per cent to 10 per cent from Saturday, January 6.

Chancellor Jeremy Hunt has claimed that the average worker on a £35,400 annual wage will save £450 across the tax year. Despite this, many workers may still remain worse off due to the threshold for paying National Insurance remaining frozen until April 2028.

This could result in many people still being dragged into paying for the tax for the first time if they receive a pay rise. Try MEN Premium now with our amazing New Year offer...

just click here to give it a go While announcing the tax cut in the Autumn Statement, Mr Hunt said: "I would normally bring in a measure like this for the start of the new tax year in April, but instead, tomorrow I’m introducing urgent legislation to bring it in from 6 January, so that people can see the benefit in their payslips at the start of the new year." National Insurance is effectively a tax on a worker's earning which is paid in relation to how much is being earned.