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

 

[tamzzy]

How much will this save in terms of net pay?

1% of your gross pay

 

[Raumarik]

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

 

[aspiring]

1% of your gross pay

huh?

 

[Haggisman]

1% of your gross pay

* after taking into account your personal allowance

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

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

 

[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

 

[200sols]

Tax cuts are unsustainable, completely reckless move.

The IFS produced a report on which i'd recommend reading at least the bullet points before getting sucked in by Hunt.

The context for the March 2024 Budget | Institute for Fiscal Studies

How might the outlook for the public finances change and how should the Chancellor’s tax and spending plans change in response in the Budget?

ifs.org.uk

 

[Haggisman]

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

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

This is made more complex if you get any other taxable benefits, Student Loan etc. which can affect your personal allowance

 

[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?

 

[tamzzy]

* after taking into account your personal allowance

haha yes, forgot about that small print lol

huh?

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

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)

 

[200sols]

not really as thresholds are frozen

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.

 

[Haggisman]

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

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

 

[Shadowness]

I'd rather pay the same/more tax and have a country that works personally.

 

[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?

 

[Haggisman]

I'd rather pay the same/more tax and have a country that works personally.

Absolutely.

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

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

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

 

[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?

 

[Haggisman]

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?

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 2023 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