HUNDREDS of thousands of workers are set for a pay rise within WEEKS when a change to taxes comes in.
The amount you can earn before you start paying National Insurance contributions (NICs) will rise to £12,570.
That's an increase from £9,500 and applies from July 6. You should see the change in your first pay check after this date.
The exact amount more you'll get in your pay will depend on how much you earn.
For example someone on a salary of £20,000 will pay around £291 less a year in NICs, according to the government's calculator.
Chancellor Rishi Sunak first announced an increase to the threshold in March, and some of the lowest earners will pay no NICs at all.
Read more on tax
Thousands of households have only DAYS left to apply for £150 council tax rebate
Tax breaks could be given to businesses that ‘buy British’ under new proposals
But it comes after a National Insurance hike on April 6, which saw millions paying extra.
The social care levy added 1.25 percentage points to National Insurance rates.
Overall both changes mean that anyone earning around £35,000 or under each year will pay less National Insurance than last year, Sarah Coles from Hargreaves Lansdown previously told The Sun.
The extra cash comes as millions face higher bills in the cost of living crisis.
Most read in Money
ON YOUR MARKS
Primark announces HUGE change and shoppers will love it
ON YOUR MARKS
Supermarkets recall chicken goujons and bread over glass contamination fears
Fury as Virgin Media warn customers they may face charge due to new rule
Iceland shoppers hitting stores for 1p sale furious over detail in small print
More cash is on its way to help hard-up households, including a payment of up to £650 from July for anyone claiming Universal Credit and other means-tested benefits.
Every household in the UK will be given at least £400 to help cover spiralling energy bills, which are set to rise by hundreds of pounds more this winter.
Pensioners will get an extra £300 one-off payment during the coldest months.
What is National Insurance?
National insurance is a tax paid by workers above a certain level of earnings.
The contributions help fund benefits like the State Pension, sick pay and unemployment benefits.
All UK nationals receive an NI number (and NI card) automatically before they turn 16.
Your NI number helps the government track your earnings and charge the right amount of tax.
You currently pay National Insurance if you’re 16 and earn over a certain amount.
Workers currently pay 13.25% on earnings between £9,564 and £50,268 and a further 3.25% is paid on wages over that.
The tax is deducted from your wages each month and you can see how much you pay on your payslip.
Read More on The Sun
You’ve been using gift bags all wrong – my easy way will keep presents hidden
I’ve got big boobs and was shaken by the gorgeous £9.50 bras in Asda
Once you reach state pension age, you don't need to pay National Insurance at all.National Insurance is not the same as income tax, and you pay this separately on your earnings too.
National Insurance works differently if you're self-employed.
We pay for your stories!
Do you have a story for The Sun Online Money team?
Email us at [email protected]
Source: Read Full Article