There is a big change coming in National Insurance, which could mean boosting your pay packet.
Millions of employees will be affected by the change in national insurance Contribution (NIC) from 6th July
change means people won’t start paying national insurance Contribution as long as they earn at least £12,570.
The current limit is £9,500.
a Simple tool made by the government This determines how much you will save once the change is implemented.
So far, 250,000 people have used NIC Checker online – but millions still have to learn how much extra will be added to their pocket,
Treasury It is said that about 30 million people will benefit from this change.
Chancellor Rishi Sunki is urging readers of The Sun to use the tool and find out how much they can save.
He said: “I know how tough it has been for hard-working Sun readers up and down the UK – with rising prices hitting everyone’s pockets.
“That’s why this government is doing everything possible to help families ease the burden of £37 billion package Support to help people with their everyday bills.
“And in less than a week, we will introduce a historic tax cut for 30 million people.
“The typical employee will save £330 – and hundreds of thousands of people have already logged on to our online tool To see how much better they will be.
“I urge all Sun readers who haven’t yet check online and see how much they can save.”
Millions of people will get will receive the first part of their cost of living this month.
The first is £326 for eight million people Expected 14th July.
The second part will come in autumn.
How much better will I be?
How Much Will You Save to Workout, Just Move on Website And enter your annual salary to get an estimate.
Some employees will not pay anything and will not pay NIC anymore.
Some can save hundreds of pounds while the highest earners can save only £10.
To help you calculate if you’ll make any changes to your NIC payments, Sun took some of the guesswork out of using online tools:
- £10,000. Currently Paying: £43.35. New estimate: £0. Savings: £43.35.
- £15,000. Currently Paying: £658.98. New estimate: £321.12. Savings: £337.86.
- £17,000. Currently Paying: £905.22. New estimate: £586.20
- £20,000. Currently Paying: £1,274.61. New estimate: £983.64. Savings: £290.97.
- £25,000. Currently Paying: £1,890.16. New estimate: £1,646.16. Savings: £244.
- £30,000. Currently Paying: £2,505.84. New estimate: £2,308.68
- £50,000. Currently Paying: £4,968.36. New estimate: £4,958.64: Savings: £10
You can use this tool if you get equal salary every month and you are paid through payment Arrangement
PAYE stands for Pay As You Earn. This system allows HMRC to track Income Tax and NIC.
However, the calculator can only provide a rough estimate. Your result may be affected by various work arrangements in the period between 6th July 2021 to 5th July 2022.
These factors include whether you are self-employed, work outside the UK or you are over the state pension age.
Also your salary and NIC may be affected by commission or if you are paid weekly.
What is National Insurance?
national insurance It is a tax paid by employees aged 16 and over who receive a certain level of earnings.
The tax helps fund benefits, including state pensions, sick pay and unemployment benefits.
Every UK citizen automatically receives an NI number before the age of 16.
This number helps the government to track your earnings and ensure that you pay the correct amount do.
Employees pay 13.25% on income between £9,564 and £50,268. If you earn more than £50,268 you will be taxed an additional 3.25%.
You can check your salary slip every month to find out how much tax you are charged.
If you are self-employed, National Insurance works differently. If you are over the state pension age, you will not pay all this.