11 June 2024
If you are covering the Tory manifesto pledge to cut National Insurance by another 2p, please see the following comment from Shaun Moore, tax and financial planning expert at Quilter:
"With the election clock ticking the Tories must attempt a last throw of the dice and while so far, their cuts to National Insurance have had a lukewarm reception they have once again stated that they plan to cut NI by another 2p.
"The headline figure is that someone earning £50,000 today will be £749 better off under the proposed rules set to be announced in the manifesto. Similarly, someone on around the average salary in the UK of £35,000 will be £449 better off per year. Whether this turns the dial enough for a party that is lagging badly behind in the opinion polls is yet to be seen.
"This may be a case of too little, too late. The reality is that many people are looking to the difficulties that public services are facing at the moment and wondering how such a tax cut like this will impact the NHS, schooling and other state support. Balancing individual financial relief with the sustainability of public services will be key in ensuring this change benefits the broader society if the party has the chance to enact it.
"It is important to remember too that this change gives nothing to pensioners who do not pay national insurance. The Conservatives will be hoping that the ‘Triple Lock Plus’ policy, which pledges not to the tax state pension, gives pensioners enough to stop them feeling hard done by."
|
Salary |
Current NI |
2% reduction |
Saving |
|
£12,570 |
£0 |
£0 |
£0 |
|
£15,000 |
£194 |
£146 |
£49 |
|
£20,000 |
£594 |
£446 |
£149 |
|
£25,000 |
£994 |
£746 |
£249 |
|
£30,000 |
£1,394 |
£1,046 |
£349 |
|
£35,000 |
£1,794 |
£1,346 |
£449 |
|
£40,000 |
£2,194 |
£1,646 |
£549 |
|
£45,000 |
£2,594 |
£1,946 |
£649 |
|
£50,000 |
£2,994 |
£2,246 |
£749 |
|
£55,000 |
£3,111 |
£2,357 |
£754 |
|
£60,000 |
£3,211 |
£2,457 |
£754 |
|
£65,000 |
£3,311 |
£2,557 |
£754 |
|
£70,000 |
£3,411 |
£2,657 |
£754 |
|
£75,000 |
£3,511 |
£2,757 |
£754 |
