皇冠体育app

• 27 million employees to receive largest ever cut to National Insurance on 6 January 2024
• Today, the House of Commons will debate the National Insurance Contributions (Reduction in Rates) Bill, with the average employee and self-employed set to get an extra 拢450 a year and 拢350 a year
• 拢9 billion a year tax cut means that personal taxes on the average salary are set to be lower in the UK than every other major economy

皇冠体育app National Insurance Contributions (Reduction in Rates) Bill will be debated in the Commons today (November 11) to implement the largest ever cut to National Insurance from 6 January 2024 鈥� less than six weeks鈥� time from today.

皇冠体育app Bill will be debated throughout the day with Members voting on the Bill this evening. It will then go to the Lords in the middle of December before receiving Royal Assent thereafter.

Reducing Class 1 National Insurance from 12 per cent to 10 per cent will reward work, meaning 27 million employees will effectively pay over 15 per cent less on National Insurance.

To the average employee on a salary of 拢35,400 this will be worth 拢450 a year, improving living standards and reducing the current combined tax rate of 32% for employees paying the basic rate of tax to 30% - the lowest since the 1980s.

Chancellor of the Exchequer, Jeremy Hunt, said:

鈥淚鈥檝e been clear from the start that I want to cut taxes. Now, having met our pledge to halve inflation, taxes can be cut in a responsible way that rewards work and helps grow our economy.鈥�

皇冠体育appse changes will mean that, for those on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent .

Taxes for the self-employed will also be cut and reformed. From 6 April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and no self-employed person will have to pay Class 2 NICs, simplifying the tax system and saving the average self-employed person on 拢28,200 a year 拢350 in 2024/25.

皇冠体育app changes will see an average full-time nurse on 拢38,900 receive an annual gain of over 拢520; an average teacher on 拢44,300 would receive an additional 拢630 a year; and a typical self-employed plumber on 拢34,400 would be 拢410 better off as a result of these cuts.

Further information

• Those self-employed people with profits between 拢6,725 and 拢12,570 will continue to get access to contributory benefits including the State Pension through a National Insurance credit without paying NICs, as they do currently.
• Those self-employed individuals with profits under 拢6,725 and others who pay Class 2 NICs voluntarily to get access to contributory benefits including the State Pension, will continue to be able to do so. 皇冠体育app weekly rate they pay will be frozen at 拢3.45 for 2024-25, rather than rising by CPI to 拢3.70.
• Other individuals will continue to be able to pay voluntary Class 3 NICs to help fill gaps in their National Insurance record to qualify for the State Pension, exactly as before. 皇冠体育app Class 3 rate will also be frozen at 拢17.45 per week for 2024-25.
• Further information can be found in the National Insurance Factsheet.