Martin Lewis has explained how workers earning above a certain amount will get a boost in their paycheque from this month.
It relates to a change in how much you pay in National Insurance (NI) after the rate was reduced from 13.25% back to 12%.
The Government claims 28million people across the UK will now keep an extra £330 a year on average in the 2023/24 tax year thanks to this change
Martin broke the good news to his millions of viewers on his ITV Martin Lewis Money Show Live on Tuesday night.
He said: "Expect more in your take-home pay this month. Most National Insurance rates dropped to 12% (1.25 percentage points)."
Martin then set out how much that change would save the average viewer. The more you earn, the higher your saving will be.
- Someone earning £12,570 - £0 gain per year
- Someone earning £15,000 - £30 gain per year
- Someone earning £20,000 - £93 gain per year
- Someone earning £40,000 - £343 gain per year
- Someone earning £75,000 - £780 gain per year
There has been a lot of back and forth with National Insurance rates this year.
Back in April, the then-Chancellor Rishi Sunak announced he would increase the rate from 12% to 13.25% to help pay for social care.
This new higher rate was introduced from April 6.
Then when Liz Truss became Prime Minister, her Chancellor Kwasi Kwarteng - who was subsequently sacked - confirmed in his Mini-Budget in September that he would reverse the hike from November 6.
Even though Rishi Sunak, who implemented the hike originally as Chancellor, is now Prime Minister, the tax rise cancellation is still going ahead.
What is National Insurance?
National Insurance is a tax on earnings and self-employed profits above a certain threshold.
Your contributions qualify you for benefits and the state pension in later life.
Once you reach state pension age, you no longer need to keep paying NI.
If you are employed, rather than self-employed, you'll pay Class 1 contributions.
You start to pay NI at a rate of 12% once you earn above £12,570 before tax.
On earnings above £50,270, you pay 2% - this has just dropped from 3.25%.
The rules are different for self-employed Brits.
If you are fully self-employed, you start to pay Class 2 contributions when your profits are above £6,725.
This is a fixed weekly amount of £3.15.
You'll pay Class 4 contributions if you're fully self-employed and your profits are £11,909 or more a year.
Class 4 contributions are charged at 10.25% on profits between £11,909 and £50,270, then 3.25% on profits over £50,270.
