Millions of workers will effectively get a pay rise from today (July 6) as changes to the National Insurance threshold are brought into place.
The rate from when you start to pay National Insurance has risen from £9,880 to £12,570.
This means less of your income is taxed, in a move that is expected to mean two million low-income workers won’t pay any National Insurance at all.
An estimated 30million Brits will be better off as a result.
But exactly how much better off you’ll be can be tricky to work out - as there was recently an increase in how much National Insurance you pay.
Will you be better or worse off after the National Insurance changes? Share your thoughts: mirror.money.saving@mirror.co.uk
The rate at which you pay National Insurance contributions was raised by 1.25 percentage points in April - up from 12% to 13.25% to help pay for NHS backlogs and social care.
This means millions of workers have been paying more in tax over the last three months.
To help you work out if the National Insurance changes will benefit you, The Mirror has created a handy calculator for you to use.
National Insurance calculator
To use our calculator, simply enter your salary.
It will then tell you how much your National Insurance bill is likely to compare in the 2022/23 tax year compared to the 2021/2022 tax year.
For example, if you are on a salary of £20,000, we estimate you'll be around £178 better off.
Someone earning £30,000 would expect to pay around £53 less in National Insurance overall.
And if you're on £40,000, you'll pay roughly £71 more - while someone earning £50,000 will be around £197 worse off.
Of course, this calculator is only meant to give you a rough guide.
It doesn't take into account bonuses, job changes, or anything else that could impact how much National Insurance you pay.
Experts at Hargreaves Lansdown suggest anyone earning less than £35,000 will be better off if you take both the April and July changes into account.
Senior personal finance analyst Sarah Cole said: "This is just a tweak to a tax that has just been hiked.
"For anyone earning just under £35,000 or less, moving the threshold will repair the damage inflicted by the National Insurance hike in April.
"70% of people will see their NI drop below what they were paying before the rise."
What is National Insurance?
National Insurance is a tax on earnings, paid by both employed and self-employed workers.
You pay mandatory National Insurance if you’re 16 or over and are either an employee earning above £190 a week, or self-employed and making a profit of £6,725 or more a year.
Once you reach state pension age, you no longer need to keep paying National Insurance.
If you have an employer, you'll pay Class 1 National Insurance contributions.
The amount you pay on National Insurance is then worked out based on your on gross earnings, before tax or pension deductions, above certain thresholds.
