The Chancellor Jeremy Hunt is now putting the finishing touches to Wednesday's Budget 2024 and the latest reports state that he has acquiesced to backbench demands and will cut taxes for the electorate.
Following on from the Autumn Statement promises to cut national insurance for millions, he is now planning the further cut to be revealed tomorrow.
In January 2024 the main rate of Class 1 NIC's fell from 12 percent to 10 percent, with a promise that the self employed will see their main rate of Class 4 NIC's fall from 9 to 8 percent in April.
Now it is touted a further two percent will be taken off the Class 1 NIC main rate. We do not have any details on the exact mechanics of this nor how it will be applied for the Self Employed but have created the below calculator tool to help you play with the figures and see how these rumoured changes could possibly affect your take home pay.
If the additional two pence cut goes ahead, a person earning £27,200, which is the last published median UK income (check your own with our UK income percentile calculator) would save £49 a month or £585 a year compared to 2023.
The move to cut NIC rates is expected to cost the Treasury £10 billion but save workers up to £900 on their tax bills from April, compared to 2023.
