For a lot of staff, it’s pay day this weekend. Given the modifications to Nationwide Insurance coverage, this calculator estimates how a lot much less you’ll pay.
This Nationwide Insurance coverage calculator from HMRC and HM Treasury offers you an estimate as to how a lot much less you may anticipate to pay following the reductions in impact from this month.
As a part of Jeremy Hunt’s 2024 Price range, he confirmed Nationwide Insurance coverage will probably be lower by 2p, taking the speed from 10% to eight% from 6 April.
This adopted on from the earlier Nationwide Insurance coverage Contributions (NICs) lower from 12% to 10%, which got here into impact from 6 January 2024.
The calculator helps staff see Nationwide Insurance coverage financial savings in your April pay packet, in comparison with March, and likewise in comparison with December 2023 earlier than the primary discount was carried out.
Listed here are some estimates of Nationwide Insurance coverage financial savings primarily based on various wage ranges:
- £20,000: You’ll pay £49.53 in NI – £12 much less in April in comparison with March, and £25 much less in April in comparison with December. The equal discount in NICs over 12 months equals £297.
- £30,000: You’ll pay £116.20 in NI – £29 much less in April in comparison with March, and £58 much less in April in comparison with December. The equal discount in NICs over 12 months equals £697.
- £40,000: You’ll pay £182.87 in NI – £46 much less in April in comparison with March, and £91 much less in April in comparison with December. The equal discount in NICs over 12 months equals £1,097.
- £50,000: You’ll pay £249.53 in NI – £62 much less in April in comparison with March, and £125 much less in April in comparison with December. The equal discount in NICs over 12 months equals £1,497.
- £60,000, £70,000, £80,000, £90,000 and £100,000+: £63 much less in April in comparison with March, and £126 much less in April in comparison with December.
Whereas the calculator offers estimate of how a lot much less staff can pay in NICs, it’s possible you’ll wish to head over to MoneySavingExpert.com. Its earnings tax calculator consists of superior choices akin to pension contributions and scholar mortgage funds that will help you work out precisely how a lot you’ll have in your month-to-month pay packet.
Nationwide Insurance coverage charges have gone down for self-employed staff too – following the 1p lower within the Autumn Assertion final yr, from 6 April the primary charge of Class 4 NICs decreased to six%, after standing at 9% the yr earlier than.
