Chancellor Rishi Sunak announced in the Spring Statement that the National Insurance Contributions starting threshold will rise by £3,000 to £12,570 from next month, meaning employees across the UK will keep more of what they earn before they have to start paying personal tax.
The cut, worth over £6 billion, will benefit almost 30 million working people with a typical employee saving over £330 in the year from July 6. The higher-rate threshold will remain at £50,270.
At the time, the Chancellor hailed it as the single biggest tax cut for a decade and said "around 70 per cent of all workers will have their taxes cut by more than the amount they'll pay through the new levy". And now HM Revenue and Customs (HMRC) have launched a new tool on the GOV.UK website which can estimate how the National Insurance contributions changes will affect your take home pay.
