Membership options available here. Get a free crate of Beer52 today!

National Insurance Rise Hits Today: Calculator to see how you’re impacted

Don't miss a thing

Published on 06/04/2022

Millions of workers will be hit by rises from today!

The Tory government says the tax rise will help pay for the £39 Billion worth of increased spending on health and social care over the next 3 years.

Workers across the nation will start paying more National Insurance contributions from today as part of the plan to raise billions for the NHS and social care.

The 1.25% point increase that was announces last autumn, is being rolled out despite strong pressure for it to be delayed in light of the wider cost of living pressures - particularly with fuel, energy bills and food all simultaneously increasing.

It means annual earnings over £9,880 will be liable for 13.25% National Insurance contributions. And above a higher threshold of £50,270, the rate will be 3.25%.

Sky News have released a graph showing how these rises could impact you:

 

National Insurance is also payable by employers - and that rate is going up by 1.25% points too.

Some critics have dubbed it a tax on jobs and warn that it may result in businesses having to raise prices or reduce wages.

After an initial review by HMRC when the policy was announced suggested that up to 29 million workers would be worse off as a result of the changes.

However, further changes announced in the Spring Statement will reduce tax bills for some.

Chancellor Rishi Sunak said:

"This government will not shy away from the difficult decisions we need to take to fix our social care system and slash NHS waiting times."

The Conservative latest election manifesto, from 2019, pledged "not to raise the rates of income tax, national insurance or VAT" but now argue that the promise was made before the pandemic hit in 2020.

Sky News have an online tax calculator so you can see how the changes will impact you.

Don't miss a thing

More from Dadsnet...

0 Comments

Submit a Comment

Enjoying Dadsnet?

Become a member for FREE!

Simply enter your email below to receive exclusive updates and content.

Success! Check your inbox as you'll receive an email from us shortly.