However, National Insurance rates will rise as planned next month. In his Spring Statement to the House of Commons, the Chancellor referred to the move as the “largest personal tax cut in a decade”. As a result of this move, the National Insurance threshold will rise to a staggering £12,570 come April. Reacting to the news on Twitter, Martin Lewis wrote: “My rough mental calculation is that those who earn under c£39,000 will see no rise in NI (from July) and most see a cut.
“Those who earn over that amount will see a rise (This is from combining new 1.25 percent point higher rate, with the £3,000 starting threshold).”
On Twitter, Rishi Sunak added: “From July, people will be able to earn £12,570 a year without paying any income tax or National Insurance.
“It’s a £6billion personal tax cut for 30 million people in the UK.
“It’s worth over £330 a year and is the largest increase in a basic rate threshold – ever.”
READ MORE: Council tax reductions explained: Who is eligible to pay less and how to claim
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