It has been revealed that the richest in the country will be least effected by National Insurance (NI) rises coming into play in April, when workers will see a 1.25 per cent increase across the board.
Those on an affluent salary of £100,000 a year in the UK will see just seven per cent of their wages go to National Insurance, while those earning the average wage of £30,000 will part with nine per cent of their annual wage.
The research, by Income Tax Calculator UK, analysed how much National Insurance (taking into account the 1.25 per cent increase in April) people earning between £20,000 to £100,000 a year would pay in in 2022, to discover what percentage of each worker’s salary would go to NI.
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Workers on £50,000 a year will be most affected by the soaring National Insurance payments, with earners set to see 10% of their earnings put towards National Insurance in 2022 – the highest of any worker.
In comparison, people on £80,000 a year will see just eight per cent of their salary go to National Insurance.
A spokesperson for Income Tax Calculator UK commented on the findings, saying: “The increase in National Insurance will have a huge effect on workers’ earnings in 2022, especially given soaring energy bills and the fact that inflation is at its highest point in 30 years.
"This data gives us a compelling insight into the fact that lower and average earners will be significantly more squeezed by the National Insurance hike than those at the very top.
"People earning some of the highest salaries in the country, for example, workers on £100,000 a year are set to pay the same percentage of their salary to NI as a person on £20,000 in 2022, despite earning five times as much, while those earning the average wage of £30,000 will see as much as nine per cent of their salary swallowed by NI.”
How will you be affected by the National Insurance rises? Check out the table below to find out.
How much NI you will pay in 2022:
Income |
National Insurance Increase |
Overall National Insurance 2022 |
% of Income spent on National Insurance |
£20,000 |
+ £130 |
£1381 |
7% |
£30,000 |
+ £255 |
£2706 |
9% |
£50,000 |
+ £505 |
£5086 |
10% |
£80,000 |
+ £880 |
£6359 |
8% |
£100,000 |
+ £1,130 |
£7008 |
7% |
In comparison, dividend tax rates for the 2021/22 year were 7.5 per cent for basic rate taxpayers, 32.5 per cent for higher rate taxpayers, and 38.1 per cent for additional rate taxpayers - whereas rates will all increase across the board by 1.25 per cent in April.
