National insurance cut

[aspiring]

Looks like a national insurance cut again next week.

How much will this save in terms of net pay?

Hunt considers National Insurance cuts at Budget

News of the possible move comes as a leading think tank says the case for cutting taxes is "weak".

www.bbc.co.uk

 

[aspiring]

1% of your gross pay

huh?

 

[aspiring]

I'd rather get the deficit down. What a mess we're leaving for future generations.

furlough scheme was always going to lead to this though...unavoidable but had to be done

 

[aspiring]

* after taking into account your personal allowance



Agreed. Whilst I'm not going to complain about an extra few £ in my pay, it is only an extra few £, and to be honest I feel like I can afford that a bit more than the constant cuts this country is receiving to all public services.

On the flip side, I have zero trust in anyone in power to put that money to good use anyway, so maybe it is better off in our pockets after all

so if someone is earning 70k what would difference be? previously it was £720

 

[aspiring]

Tax cuts are unsustainable, completely reckless move.

not really as thresholds are frozen

 

[aspiring]

Take your salary, minus your personal allowance (default is currently £12,570), multiply by 0.01.

E.g. if you're on £70k:

£70,000 - £12,570 = £57,430
£57,430 * 0.01 = £574.30/year, or £47.86/month

does this include previous cut that has been in place since Jan?

 

[aspiring]

No, that's what you'll save for every 1%, along with the 2% cut in January it would be £143.58 in total

so I got extra £60 every month from Jan so with this extra 1% it won't affect me anymore?

 

[aspiring]

Yes really read what the experts are telling you and not what Hunt is selling you in an election grab.

They pay for this by decimating public services which cannot take it.

these so called experts make a number of incorrect decisions

 

[aspiring]

haha yes, forgot about that small print lol



that was a 2% cut, so 1%...which is what is being mooted... will be approx £360/yr (slightly crude as it doesn't take into account personal allowance)

but will that add on as extra? e.g. I am getting £720 at the moment so with this extra cut will I get £360 more?

 

[aspiring]

Absolutely.

If they really feel the need to cut tax, at least raise the thresholds so it benefits those who need it the most!



If you got an extra £60/month with a 2% cut, then you'll get a further £30/month with a further 1% cut

thank you

 

[aspiring]

I assume by "getting" you mean "paying"?

Stick the figures on your latest payslip into this site, confirm it's close to what you're currently getting paid, then tweak to see what effect any cuts/increases will have:

The Salary Calculator - Take-Home tax calculator

The Salary Calculator tells you monthly take-home, or annual earnings, considering UK Tax, National Insurance and Student Loan. The latest budget information from April 2024 is used to show you exactly what you need to know. Hourly rates, weekly pay and bonuses are also catered for. Why not find...

www.thesalarycalculator.co.uk

As in I get £60 a month extra on my net pay since Jan so I guess I will get £90 now

 

[aspiring]

Ah yes, sorry, the £720 being annual rather than monthly - yeah that should be correct. I assume you have a pension/childcare/car/healthcare or something through work which reduces your tax liability.

I get full personal allowance and do pension sacrifice

 

[aspiring]

not sure that's quite right as the cuts don't apply to the 2% rate above the upper threshold I believe

yeah I actually thought this initially, so it does not affect high earners?

 

[aspiring]

Public services decimated and in need of investment, what's the best solution? Cutting it even more for headline grabbing and paltry tax cuts.

We never learn.

even with record levels of investments public services fail, look at NHS

 

[aspiring]

I think in general taxes need to be lower. But such a small cut is negligible and we have a huge deficit to repay. So now is probably not the right time for a small election bribe. Anyway, people will still be paying more tax due to fiscal drag.

does the cut affect take home for high earners?

 

[aspiring]

Only record in absolute amount, as a rate we are under (of GDP). The population has increased and there are more old people.

The only play the Tories have with public services is under invest or damage until the point of selling it off or just selling it off. Then claim the market will decide and it will cost the government less.

And lets not forget they first promised to balance the budget, then they said it would take longer, then they didn't do it. And now we're at the highest tax burden in decades, the biggest drop in living standards in decades and average salaries lower than 2008 when adjusted (this will be true up until 2026 - nearly 20 years after. The ****!?). Nothing to show for it when we had all those years of cheap money.

We hear every year that tories will sell it off but that is fiction. At the end of the day there is only so much the NHS can do for an ageing population considering it is also a free service.

 

[aspiring]

Yes the NI cut affects all earners. But it is clawed back by fiscal drag (ie tax thresholds don't change so more people get dragged into tax bands when they get a pay rise).

How much will someone on 70k get back as net with the proposed cut next week and the one that happened in Jan

 

[aspiring]

About 90 quid per month depending on your personal tax codes.

Is that although the cut doesnt apply to higher rates if I recall?

 

[aspiring]

I think that’s an overly-negative attitude. The NHS, our schools and local services were in a pretty good state in 2010. Not perfect by any stretch but good.

Then austerity came in and everything has been on a downward spiral since.

We didnt have pandemics or a population as old as now.in 2010

 

[aspiring]

Not sure what he will cut next week?