5 March 2024
If you are covering the rumour that a 2% cut in National Insurance is going to be announced at the Budget tomorrow, please see the following figures and commentary from Rachael Griffin, tax and financial planning expert:
"It looks like Chancellor Jeremy Hunt has opted for the cheaper and potentially less headline grabbing option of cutting national insurance by a further 2%. This means that millions of hard-working Britons will see more money in their pockets every month, as the government tries to ease the pressure of the highest tax burden in decades. While a cut in taxes will for some be a needed boost, it hardly turns the dial much considering we are dealing with a historic tax burden at present. However, it will certainly be a crowd pleaser with someone earning £30,000 a year being around £58 better off a month if you also take into account the national insurance cuts in the Autumn Statement. However, many people don’t understand how national insurance works and a cut to income tax would have been easier for all to understand but crucially much more expensive.
"The below table illustrates how the national insurance cut announced at the Autumn Statement and a potential further 2% cut tomorrow impacts people’s finances dependant on their salary":
|
12% (pre Autumn statement) |
10% (current) |
Saving |
Additional 2% |
Total saving |
|
|
£30,000 |
£2,091.60 |
£1,743.00 |
£348.60 |
£348.60 |
£697.20 |
|
£34,963 |
£2,687.16 |
£2,239.30 |
£447.86 |
£447.86 |
£895.72 |
|
£40,000 |
£3,291.60 |
£2,743.00 |
£548.60 |
£548.60 |
£1,097.20 |
|
£50,000 |
£4,491.60 |
£3,743.00 |
£748.60 |
£748.60 |
£1,497.20 |
For more information, please contact Alex Berry on + 44 (0)7741151931
