Tax and NI

[kufc]

Can anyone explain in very basic terms what the tax and national insurance changes are in April and July?

What difference will this make to someone on:

£12,000

£30,000

£55,000

Thanks

No idea about tax, is it changing? National Insurance is on the bbc news. There is a chart on there. Lower incomes will pay less not more thankfully.

It's easy to Google this information . Why make a MN thread when you can do a websearch

www.bbc.co.uk/news/uk-politics-58436009

Partly to see if other people were aware of the changes too. I had seen headlines but wasn't sure if the detail and kind of thought I'll wait to see what my pay packet looks like. Not sure if others take the same approach or are aware that changes are happening

Put the figures into here: www.thesalarycalculator.co.uk

It isn't yet updated for the July changes, but will show the April changes.

Actually, the July updates are now live on the above ^

@CJay81

No idea about tax, is it changing? National Insurance is on the bbc news. There is a chart on there. Lower incomes will pay less not more thankfully.

How do you work that out?

Start paying NI at 9k now, not 12k.
Taxes income from employment not other sources.

The chancellor changed it to 12,570 in the spring statement in March. If you look on the bbc at the story. If your earning 34k or less, your national insurance will be less.

@Theworldisfullofgs

How do you work that out?

Perhaps they have read information correctly, unlike you. The limit for NI has never been £12k but it will increase slightly from where it was as of today.

Aprilx
Thanks you are right.

@CJay81

The chancellor changed it to 12,570 in the spring statement in March. If you look on the bbc at the story. If your earning 34k or less, your national insurance will be less.

The £12570 threshold for NI doesn't come in until July.

The NI increases apply today.

Tax rates haven't increased but the thresholds have been frozen so anyone near the thresholds who gets a payrise will likely be payiing tax for the first time or paying at 40% for the first time.

Close
July 2022 National Insurance change
On 23rd March 2022 Chancellor Rishi Sunak announced an increase in the threshold for payment of Employee's National Insurance from £190 per week to £242 per week, with effect from July 2022. This reduces the amount of NI that employees will pay from that date, but payments made between April and June will have the previous threshold applied.

Ah I didn't realise it didn't come in till July. Thanks for the jnfo. At least its only a few months with less pay thankfully.

The NI Changes coming into place from today are to increase the rates i.e. the 12% (basic rate) to 13.25% the increase is for the health and social care levy (for NHS and social care). This change happens from today and the allowance i.e. when you start paying remains at £9,568. From July they are increasing that allowance so you wont start paying until you earn over £12,570 a year. It does not go far enough to help those on lower incomes but it's a start. Hope this helps.