TAX RISE
National Insurance rise: tax calculator shows how much MORE you’ll pay this April
NATIONAL Insurance rates rise today and it means millions of people are now expected to pay more tax.
The rise was first announced last year and is designed to help cover the costs of social care.
1
Unfortunately for tax payers, the increase comes just as living costs have taken a massive hit on Brits' wallets.
Energy bills have just gone up by almost £700 and households have been struck with increased broadband bills, water bills, and more, at home.
Plus the cost of shopping for groceries has increased too.
And now the National Insurance tax rise could squeeze already hard-up households further.
READ MORE ON MONEY
National Insurance rates are different depending on how much you earn.
You pay National Insurance when you're employed and earning more than £9,568 a year, or £184 per week.
Self-employed people earning more than £6,515 also pay national insurance contributions.
But as announced in the Spring Statement, the threshold for when you start paying National Insurance will be increased by £3,000, to £12,570, but not until July 6.
Most read in Money
The hike though, will hit the finances of around 25million Brits, who will have to pay 1.25 percentage points extra.
This means rates rise from 12% on earnings between £184 to £967 a week to 13.5%.
The rate on earnings over this amount will also rise from 2% to 3.25%.
As the rates are a percentage of your earnings the exact amount more you'll pay in cash terms will depend on your circumstances.
Before today, someone earning £15,000 a year would have paid contributions of £652, while another person earning an annual salary of £25,000 will have been taxed £1,852 a year.
On earnings of £15,000 the increase will mean paying an extra £68 a year, and for £25,000 an additional £193.
You can use The Sun's tax calculator, created with tax advisors Blick Rothenberg, to help you work out how much tax you'll be paying and what your take-home pay will be.
You can find .
You'll be asked to fill in some personal details like your age and if you're married or have kids.
Fill in your annual salary and any other income you have, for example from a pension or investments.
The government previously announced that there will be no income tax rise next year and the current rates will be frozen until 2026.
READ MORE SUN STORIES
Read More on The Sun
It’s worth noting that the information entered into the tax calculator may be used to produce aggregated trend analysis but will not be used to identify individuals or their personal circumstances.
The calculator is designed only to give you an indication of how the changes could impact your situation.
We pay for your stories!
Do you have a story for The Sun Online Money team?
Email us at [email protected]
Topics