National Insurance could be cut immediately with Liz Truss as PM – what it means for you
Boris Johnson briefs cabinet on National Insurance cuts
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
She has previously pledged to scrap the Health and Social Care Levy, and is now looking to bin the policy as soon as possible if she is elected. The leadership contender has also set out to scrap the green levy on energy bills, to help Britons struggling with the soaring cost of living.
Writing for the Sunday Telegraph, she said: “We would put more money back in the pockets of hard-working people without delay.
“That is necessary, affordable and the right thing to do at a time when we face the highest tax burden in 70 years.”
The levy increased contributions by 1.25 percent from April this year.
This applies to people who pay contributions as employer Class 1, employee Class 1, Class 1A, Class 1B and Class 4.
The levy will be in effect for one year, and will become a separate tax from April 2023.
Britons have just had a boost to their pay packet as the National Insurance threshold for the main rate was increased from £9,880 to £12,570.
This means that workers will get an average pay rise of £330 a year.
Government data suggests that around 30 million people will benefit from the threshold change.
Britons furious as energy price cap will change every three months [INSIGHT]
Money saving tips: Britons could save thousands with summer budget [UPDATE]
Woman, 43, fears rising mortgage rate and ‘crippling’ exit fees [LATEST]
Increasing the threshold also means that around 2.2 million people will no longer pay Class 1 and Class 4 contributions.
Some 70 percent of National Insurance taxpayers will pay less as a result of the change.
Ms Truss has also vowed to keep corporation tax at 19 percent, with the tax currently set to go up to 25 percent from April next year.
Fellow contender, Rishi Sunak, is proposing to slash income tax to improve the take home pay of struggling Britons.
He has pledged to reduce the basic rate of income tax by 4p, from 20p in the pound to 16p.
The 20 percent tax cut would be the largest reduction in income tax in 30 years.
National Insurance contributions are important as they count towards a person’s state pension.
Britons need 30 years of contributions to get the basic state pension, of £141.85 a week
Workers will need to accrue 35 years of contributions to get the full state pension, of £185.15.
National Insurance credits are available for people on low incomes or on benefits to cover a period when they are not paying in.
People on Universal Credit automatically get credits towards their record, as do people on Carer’s Allowance.
Britons can check their National Insurance record on the Government website.
Individuals can also request a printed National Insurance statement online or by phone.
Source: Read Full Article