Millions of workers need to check if they'll get a pay rise in July using government tool – you could get £330 | The Sun
A HUGE change to National Insurance is on the way that could mean a boost to your pay packet.
Millions of workers will be affected by a change to National Insurance Contributions (NICs) from July 6.
The change means people won’t start paying National Insurance Contributions until they earn at least £12,570.
The current threshold is £9,500.
The change will save the average worker £330 a year according to Bestinvest, but this will depend on how much you earn.
A handy tool created by the government works out how how much you will save once the change comes into force.
READ MORE ON TAX
Simple check to find out if you’re owed a tax refund NOW
Exact date households MUST apply for Council Tax £150 rebate – or risk missing out
So far, 250,000 people have used the online NICs checker – but millions are still yet to learn how much extra will be added to their pockets.
The Treasury says around 30 million people will benefit from the change.
Chancellor Rishi Sunak is urging readers of The Sun to use the tool and find out how much they could save.
He said:“I know how tough it’s been for hard-working Sun readers up and down the UK – with rising prices hitting everyone in the pocket.
Most read in Money
PUMPED UP 
I fell for Tesco £1 pay at pump petrol 'bargain' – but it was a MASSIVE mistake
Millions of workers will get a pay rise within DAYS worth up to £330
I caught my neighbours on CCTV dumping my son's slide & swings after lawn row
Major change to homeowner rules from TODAY – what it means for you
“That’s why this government is doing everything we possibly can to help households ease the burden, introducing a £37 billion package of support to help people with their everyday bills.
“And in less than a week’s time, we will be introducing a historic tax cut for 30 million people.
“The typical employee will be saving £330 – and hundreds of thousands of people have already logged on to our online tool to see how much better off they will be.
“I urge all Sun readers who haven’t checked yet to go online and see how much they could save.”
Millions of people will get will get the first chunk of their cost of living payments this month.
The first £326 for eight million people is expected from July 14 onwards.
The second part will come in the autumn.
How much better off will I be?
To workout how much you'll save just go onto the website and enter your annual salary to receive an estimate.
Some employees will pay nothing at and will no longer be paying NICs.
Some could save hundreds of pounds while the highest earners will only save £10.
The Sun did some estimates using the online tool to help you calculate if you'll have any changes to your NIC payments:
- £10,000. Currently paying: £43.35. New estimate: £0. Savings: £43.35.
- £15,000. Currently paying: £658.98. New estimate: £321.12. Savings: £337.86.
- £17,000. Currently paying: £905.22. New estimate: £586.20
- £20,000. Currently paying: £1,274.61. New estimate: £983.64. Savings: £290.97.
- £25,000. Currently paying: £1,890.16. New estimate: £1,646.16. Saving: £244.
- £30,000. Currently paying: £2,505.84. New estimate: £2,308.68
- £50,000. Currently paying: £4,968.36. New estimate: £4,958.64: Saving: £10
You can use this tool if you receive the same pay each month and are paid through the PAYE system.
PAYE stands for Pay As You Earn. This system allows HMRC to track income tax and NICs.
However, the calculator can only provide a rough estimate. Your result may be affected by various working arrangements from the period between July 6 2021 to July 5 2022.
These factors include whether you’re self-employed, work outside the UK or you’re over state pension age.
Plus your pay and NICs can be affected by commission or if you're paid weekly.
What is National Insurance?
National Insurance is a tax paid by employees aged 16 and over who receive certain level of earnings.
The tax helps fund benefits including state pension, sick pay and unemployment benefits.
Every UK citizen receives an NI number automatically before turning 16.
The number helps the government track your earnings and ensures you pay the right amount of tax.
Employees pay 13.25% on earnings between £9,564 and £50,268. If you earn over £50,268 you’ll be taxed an extra 3.25%.
Read More on The Sun
I’m a size XL & my friend’s an XS – we tried on loads of Zara clothes
My neighbours have put up a 6ft fence to stop my son playing in the garden
You can find out how much you’ve been taxed by checking your pay slip each month.
If you’re self-employed, National Insurance works differently. If you’re over state pension age, you won’t pay it all.
Source: Read Full Article