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New calculator reveals if you'll be £300 better off after National Insurance changes


A new online tool has launched that lets you see how much you’ll save when cuts to National Insurance kick in next month, and while most of us will pay less tax, some will pay more

The tax cut is meant to help with the rising cost of living

Low-income taxpayers will be roughly £300 a year better off from July 6, while others will pay more – and now you can check exactly how much you’ll save.

The Government has launched a calculator that shows how much more of your wage you’ll keep once changes to National Insurance (NI) kick in next month.

Chancellor Rishi Sunak is raising the amount you can earn before paying NI from £9,880 to £12,750 from July 6.

The idea is to help Brits with the cost of living crisis by cutting NI, a sort of tax.

The new calculator uses your salary information to give you an idea how much you’ll save if they pay tax through PAYE.

Someone aged 25 working 37.5 hours a week on minimum wage would earn £17,100 a year – and save £318 in NI.







The Treasury says the new tool will help Brits budget
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This is because their NI bill would fall from £917.52 currently to £599.40.

That £599.40 not only pays for NI but also a new Health and Social Care Levy, a 1.25 percentage point tax hike to help fund the NHS and social care costs.

A taxpayer earning £18,000 would save an extra £310 a year.

Someone earning £20,000 a year would be £291 a year better off and a taxpayer on £30,000 would save £197.

However, a high earning on a £50,000 salary would save just £10 – and anyone earning £100,000 per year would pay £459 more.

The Treasury stated that the tool will “help people budget” during the cost of living crisis.

The Chancellor added that seven out of 10 people will be paying less for NI from July even with the 1.25 percentage point increase to the contributions.

Each year the Social Levy is expected to raise around £12billion for the Government.

Over the next three years, the Department for Health and Social Care expects the levy to provide nearly £40billion of funding for the NHS.

Sunak said: “With our historic £6billion National Insurance tax cut just weeks away, this new tool will show hard-working Brits how much more of their pay will be going directly into their pocket.

“This tax cut, combined with £400 off energy bills and direct payments of £1,200 to eight million families, will help shield people from rising prices.”

Alongside the online tool, the Treasury has also launched a New Financial Support and Benefits Checker Tool.

This tool aims to help people find Government financial support that they could be eligible for.

The benefits tool asks a person 10 questions and cross-checks against 25 individual benefits and support offers.

The financial support that people will be shown includes childcare support, Job Seeker’s Allowance, budgeting loans and housing benefit.

A wider range of benefit options will be included in a later version of the tool which will come out in the next few months.

The increase to the thresholds however means that around two million lower earners will be pulled out of paying the tax altogether.

The Chancellor also announced in his Spring Statement that he was going to cut Income tax by one pence in April 2024.

The Treasury says that this will benefit around 30 million taxpayers.

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