Up to 27million workers to get £225 income boost from January in huge tax shake-up – check if you’ll benefit
MILLIONS of Brits will a bumper income boost thanks to a major tax cut announced in the Autumn Statement.
The average employee is set to receive a £225 pay boost thanks to a two percentage point cut to the main rate of National Insurance.
Jeremy Hunt said: “High employment taxes on 27 million people working in the public and private sectors also disincentivise the hard work we should be encouraging.
“On top of income tax at 20%, they pay 12% National Insurance on earnings between £12,570 and £50,270 – that’s a 32% marginal tax rate.
“If we want people to get up early in the morning, if we want people to work nights, if we want an economy where people go the extra mile and work hard then we need to recognise that their hard work benefits all of us.
“So today, Mr Speaker, I am going to cut the main 12% rate of employee National Insurance.
“If I cut it by 1 percentage point to 11%, that would be an extra £225 in the pockets of the average worker every year.
“But instead, I’m going to go further and cut the main rate of Employee National insurance by 2 percentage points from 12% to 10%. This change will help 27 million people.
“It means someone on the average salary of £35,000 will save over £450.
“For the average nurse, it is a saving of over £520 and for the typical police officer it is a saving of over £630 every single year.
“Mr Speaker, I would normally bring in a measure like this for the start of the new tax year in April, but instead tomorrow I’m introducing urgent legislation to bring it in from January 6, so that people can see the benefit in their payslips at the start of the new year.”