Chancellor Kwasi Kwarteng has this morning confirmed the increase to National Insurance contributions that came into effect earlier this year will be reversed from November 6.
But what does this news mean for the money in your pocket?
The Mirror reported how the reversal of the National Insurance rise will effect West Lothian workers.
Workers with an annual salary of £20,000 would save £93 under the policy, while someone earning £80,000 would be £843 better off.
For someone earning £100,000, the saving would be £1,093. See the full yearly breakdown here:
- Salary - £20,000 ; Current NI - £984 ; After NI reduction - £892 ; Tax saving - £93
- Salary - £30,000 ; Current NI - £2,309 ; After NI reduction - £2,092 ; Tax saving - £218
- Salary - £40,000 ; Current NI - £3,634 ; After NI reduction - £3,292 ; Tax saving - £343
- Salary - £50,000 ; Current NI - £4,959 ; After NI reduction - £4,492 ; Tax saving - £468
- Salary - £60,000 ; Current NI - £5,311 ; After NI reduction - £4,719 ; Tax saving - £593
- Salary - £70,000 ; Current NI - £5,961 ; After NI reduction - £4,919 ; Tax saving - £718
- Salary - £80,000 ; Current NI - £5,636 ; After NI reduction - £5,119 ; Tax saving - £843
- Salary - £90,000 ; Current NI - £6,286 ; After NI reduction - £5,319 ; Tax saving - £968
- Salary - £100,000 ; Current NI - £6,611 ; After NI reduction - £5,519 ; Tax saving - £1,093
This does not include the added impact of the National Insurance threshold rising from £9,880 to £12,570 in July.
Unfortunately for us Scots, however, key elements of the mini budget will not apply here.
This includes the cut in additional rate income tax from 45 per cent to 40 per cent on earnings above £150,000. The rate in Scotland remains at 46 per cent.
A cut in basic rate tax from 20p in the pound to 19p does not apply in Scotland. The basic rate has different thresholds for Scottish taxpayers, and is currently at 21p.
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