Work out your new monthly pay as millions due income boost after National Insurance cut this month
dailyrecord.co.ukMillions of employees are set for a boost in their take-home pay from this month after the main rate of class 1 National Insurance (NI) deductions was cut from 12 per cent to 10 per cent on Saturday, January 6.
The change will mean an average worker on a salary of £35,400 will get a tax cut of more than £450 in 2024/25, while an employee earning £50,000 will pay £3,743 in National Insurance after the change, saving about £749.
A new online tool on GOV.UK can help people quickly work out how much they can expect to save over the year ahead. You can use the online calculator to get an estimate if you’re employed and paid the same amount monthly, by your employer through the PAYE system.
Someone earning £20,000 can expect an annual saving of around £148, while those on £25,000 will save £248. A worker earning £30,000 will save just over £348 in the 2024/24 financial year.Self-employed people will also see a reduction in their NI contributions from 9 per cent to 8 per cent on profits over £12,570 from April 6.
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