Every penny counts as the reality of the cost of living crisis hits, but it is pounds not pence that millions of UK households are set to bank. A report states that from this week, Brits could get a £500 per year cash boost.
In April, National Insurance contributions rose by 1.25 percentage points as part of plans to help pay for social care and deal with the NHS backlog. However, that move has now been reversed and funding for health and social care services will be maintained at the same level as if the levy were in place.
From Sunday, November 6, the reversal of April’s rise in National Insurance took effect and this, added to July’s increase in National Insurance thresholds, means that almost 30 million people will be £500 better off on average next year due to the changes, according to a report by Nottinghamshire Live's sister publication, Liverpool Echo. Meanwhile, 920,000 businesses will save an average of almost £10,000.
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On September 23, the tax cut was announced by then Chancellor, Kawasi Kwarteng, as part of the reversal of the Health and Social Care Levy. Now, working people across the UK will begin receiving the effects of the tax cut in their payslips, with all expected to have started receiving it by February.
Most employees will start to receive this tax cut directly through payroll between November and February - although some may be delayed until December or January. It takes effect in all parts of the UK and means working people will keep more of the money they earn.
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