Chancellor Jeremy Hunt confirmed a 2p cut in National Insurance (NI) in the Budget today (6 March), worth around £450 a year for someone on an average salary.
The cut, widely trailed in advance of the Budget and applying from 6 April, will cost the Treasury approximately £10bn a year.
According to advance figures from Evelyn Partners, those earning £20,000 will save £149 a year; those earning £30,000 will save £309 a year; and those earning £40,000 will save £549 a year.
Higher and additional rate taxpayers, meanwhile, would save £754 a year.
Prior to the Budget, Lindsay James, investment strategist at Quilter Investors, said: “While this cut would be welcome news to hard-pressed taxpayers, in the context of frozen tax thresholds and other planned tax rises in the years ahead in areas such as stamp duty land tax, the tax burden is still on track to exceed all-time highs. Meanwhile, public services continue to be a source of frustration for much of the electorate.”
