![[UK] National insurance cut now in effect](http://gpa.net/cdn/shop/articles/bigstock-London--Uk--September--th--322800790_c6f66c64-2203-4256-aa09-6f6b80d33fff_1200x.jpg?v=1704854462)
On January 6, the UK government’s reduction in employees’ national insurance contributions took effect. The change followed the chancellor’s announcement of a two percentage points cut - from 12 per cent to 10 per cent - in the Autumn Statement, Personnel Today reports.
According to the Treasury, around 27 million people will benefit from the tax cut. It will bring a £450 saving this year for an average salaried worker earning £35,400.
An average full-time nurse will reportedly save £520, a junior doctor £750 and a teacher £630.
UK Prime Minister Rishi Sunak said, “We have made tough decisions on the economy, supporting people through global shocks such as the pandemic and Putin’s illegal invasion of Ukraine. It is because of the tough decisions this government has taken that today we are able to cut taxes for 27 million people across the UK.
“Today’s tax cuts will directly reward hard-working people, putting £450 back in the pocket of the average worker and helping them make ends meet.”
Chancellor of the Exchequer Jeremy Hunt said, “With inflation halved, we’ve turned a corner and are cutting taxes – starting with today’s record cut to National Insurance worth nearly £1,000 for a household.
“From nurses and brickies, to cleaners and butchers, 27 million hard-working Brits will have a little more cash in their pockets.”
The government has reportedly stated the cut means that for those on average salaries, personal taxes would be lower in the UK than in every other G7 country, based on recent OECD data.
HMRC launched an online tool to help people understand how much they will save in national insurance contributions in 2024 now the cut is in effect.
Self-employed workers will see an additional reduction in tax, when Class 2 national insurance contributions - paid at a flat rate of £3.45 a week - are abolished altogether from April 2024. Class 4 contributions are paid at a rate of 9 per cent on earnings between £12,570 and £50,268 and will also be cut to 8 per cent.
Source: Personnel Today
(Link and quotes via original reporting)
On January 6, the UK government’s reduction in employees’ national insurance contributions took effect. The change followed the chancellor’s announcement of a two percentage points cut - from 12 per cent to 10 per cent - in the Autumn Statement, Personnel Today reports.
According to the Treasury, around 27 million people will benefit from the tax cut. It will bring a £450 saving this year for an average salaried worker earning £35,400.
An average full-time nurse will reportedly save £520, a junior doctor £750 and a teacher £630.
UK Prime Minister Rishi Sunak said, “We have made tough decisions on the economy, supporting people through global shocks such as the pandemic and Putin’s illegal invasion of Ukraine. It is because of the tough decisions this government has taken that today we are able to cut taxes for 27 million people across the UK.
“Today’s tax cuts will directly reward hard-working people, putting £450 back in the pocket of the average worker and helping them make ends meet.”
Chancellor of the Exchequer Jeremy Hunt said, “With inflation halved, we’ve turned a corner and are cutting taxes – starting with today’s record cut to National Insurance worth nearly £1,000 for a household.
“From nurses and brickies, to cleaners and butchers, 27 million hard-working Brits will have a little more cash in their pockets.”
The government has reportedly stated the cut means that for those on average salaries, personal taxes would be lower in the UK than in every other G7 country, based on recent OECD data.
HMRC launched an online tool to help people understand how much they will save in national insurance contributions in 2024 now the cut is in effect.
Self-employed workers will see an additional reduction in tax, when Class 2 national insurance contributions - paid at a flat rate of £3.45 a week - are abolished altogether from April 2024. Class 4 contributions are paid at a rate of 9 per cent on earnings between £12,570 and £50,268 and will also be cut to 8 per cent.
Source: Personnel Today
(Link and quotes via original reporting)