Around 31 million taxpayers are to benefit from a rise in the National Insurance threshold this month. The increase came into effect from the start of the new tax year on April 6, 2020.
While this will depend on income, back in January, HM Treasury said that following the changes, a typical employee will save around £104 in 2020-21.
Meanwhile, self-employed people, who pay a lower rate, will have £78 cut from their bill.
All the other thresholds for 2020-21 will rise with inflation, except for the upper NICs thresholds which will remain frozen at £50,000, as announced at Budget 2018, HM Treasury said.
However, the Institute for Fiscal Studies has previously said that the increase in the threshold to £9,500 would deliver the biggest benefit to higher earners.
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The think-tank said in November 2019 that the highest income 30 percent of working households will gain a £150 tax break, however this would be worth about £30 to the poorest 10 percent.
Xiaowei Xu, a Research…
