31 million taxpayers to benefit from a tax cut

The government confirmed on 30 January that around 31 million taxpayers will benefit from a tax cut, as National Insurance contributions thresholds rise to £9,500 per year.

A typical employee will save around £104 in 2020-2021, while self-employed people, who pay a lower rate, will have £78 cut from their bill.

All the other thresholds will rise with inflation, except for the upper NICs thresholds which will remain frozen at £50,000, as announced at Budget 2018.The threshold changes will not affect low earners’ entitlement to contributory benefits such as the State Pension, with the Lower Earnings Limit and Small Profits Threshold, above which individuals start building entitlement to contributory benefits, rising with inflation.

Further details can be found on GOV.UK