National Insurance Alignment

[Cindy34]

In the Autumn Statement there was mention of the National Insurance thresholds being aligned.

Anyone know what that means in reality... how it affects how much NI we have deducted from our pay, or if it will cost employers more. I expect that it will cost someone more... either us workers or the employers.

Aligning so it kicks in for both when wage is £157 per week. No change for employees, will increase employer costs by £7.50 or so per year I think.

I think the PT will also rise for the employee, from £155 to £157, so makes a small difference to employee as well.

Assuming tax rates remain the same but the threshold for Employee PT and Employer ST align, then on a 1700 per month gross salary, an employee is £1.04 better off per month and the employer saves 60p per month.