{"id":69384,"date":"2023-11-25T04:46:32","date_gmt":"2023-11-25T04:46:32","guid":{"rendered":"https:\/\/celeband.com\/?p=69384"},"modified":"2023-11-25T04:46:32","modified_gmt":"2023-11-25T04:46:32","slug":"what-does-national-insurance-cut-mean-for-me-and-my-wages-the-sun","status":"publish","type":"post","link":"https:\/\/celeband.com\/lifestyle\/what-does-national-insurance-cut-mean-for-me-and-my-wages-the-sun\/","title":{"rendered":"What does National Insurance cut mean for me and my wages? | The Sun"},"content":{"rendered":"

CHANCELLOR Jeremey Hunt announced a swathe of tax cuts from both the self-employed and normal working Brits in his Autumn Statement.<\/p>\n

Mr Hunt\u00a0vowed to "reduce debt, cut taxes and reward work" as he\u00a0unveiled a package\u00a0aimed at saving cash-strapped Brits and turbo-charging the economy.<\/p>\n


\n<\/p>\n

He slashed National Insurance, boosted Universal Credit benefits and put up the national living wage.<\/p>\n

Below we explain exactly what the National Insurance cut means for your wages.<\/p>\n

What does it mean for workers?<\/h2>\n

The average employee is set to receive a\u00a0\u00a3450 pay rise thanks to a two percentage point cut\u00a0to the main rate of\u00a0National Insurance Contributions (NICs).<\/p>\n

The main 12% rate of employee\u00a0NI, also knowns as Class 1 NICs will be cut.<\/p>\n

Read more in money<\/h2>\n

<\/picture>PAY RISE <\/span><\/p>\n

Up to 27million workers to get hundreds back in their pocket in huge tax cut<\/h3>\n

<\/picture>TAX CUT <\/span><\/p>\n

Self-employed to get \u00a3350 income boost thanks to Autumn Statement<\/h3>\n

From January 6, the rate will be cut by two percentage points from 12% to 10%.<\/p>\n

This change will help 27million people and it means that someone earning an average salary of \u00a335,000 will save over \u00a3450.<\/p>\n

Depending on your role and income you could take up up to \u00a3600 a year more thanks to the tax cut, according to the Treasury.<\/p>\n

For example, a senior nurse with 5 years of experience on \u00a342,618 will receive an annual gain of \u00a3600.<\/p>\n

Most read in Money<\/h2>\n

<\/picture>CHEERS JEZ! <\/span><\/p>\n

Readers praise Hunt’s tax break but warn more is needed to get election backing<\/h3>\n

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Cadbury says ‘sorry’ as customers find HUGE issue with Christmas Roses tins<\/h3>\n

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Autumn Statement winners and losers \u2013 how it will affect you explained<\/h3>\n

<\/span><\/p>\n

An average full-time nurse on \u00a338,900 will receive an annual gain of over \u00a3520.<\/p>\n

A police officer on \u00a344,300 will receive an annual gain of over \u00a3630.<\/p>\n

Plus, a typical junior doctor on \u00a363,000 will receive an annual gain of over \u00a3750.<\/p>\n

Even a cleaner working night shifts on \u00a321,000 will receive a gain of \u00a3170.<\/p>\n

The average teacher on \u00a344,300 will receive an annual gain of over \u00a3630.<\/p>\n

And a hard-working family with two earners on the average earnings of \u00a335,404 will be \u00a3900 better off.<\/p>\n

What does it mean for the self-employed?<\/h2>\n

The self-employed will get an income boost of up to \u00a3350 thanks to the abolition of some NICs in today's\u00a0Autumn Statement.<\/p>\n

He is also cutting one percentage point off the rate charged for Class 4 NICs.<\/p>\n

The move would save two million self-employed workers \u00a3350 a year from April.<\/p>\n

Class 2 and Class 4 NI are paid by self-employed Brits making a profit of \u00a312,570 or more a year.<\/p>\n

Class 2 NI\u00a0is a flat rate compulsory charge, currently \u00a33.45 a week, paid by self-employed people earning more than \u00a312,570 which gives state pension entitlement.<\/p>\n

But from April 2024, the government is abolishing Class 2 National Insurance altogether, saving the average self-employed person \u00a3192 a year.<\/p>\n

The same workers pay Class 4 NI at 9% on all earnings between \u00a312,570 and \u00a350,270.<\/p>\n

But that rate is being cut by one percentage point to 8% from April.<\/p>\n

What is National Insurance?<\/h2>\n

National Insurance\u00a0is a\u00a0tax\u00a0on your earnings, which is put into a fund to use for some state\u00a0benefits.<\/p>\n

This includes the\u00a0state pension, statutory sick pay, maternity leave and unemployment benefits.<\/p>\n

If you are a UK national, you should receive an NI number and card automatically before you turn 16.<\/p>\n

This number allows the government to track your earnings and apply the right amount of tax.<\/p>\n

Who pays National Insurance?<\/h2>\n

You pay\u00a0National Insurance\u00a0if you\u2019re 16 or over and either:<\/p>\n