THOUSANDS of workers could get less money in their pay packets today due to major tax changes.
The last Friday of the month is pay day for many employees – and it’s the first since National Insurance rates were hiked.
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National Insurance tax jumped 1.25 percentage points on April 6 – which will cost some workers hundreds of pounds extra a year.
Rates rose from 12% on earnings between £184 to £967 a week to 13.5%, affecting around 25million taxpayers.
That means workers who get paid today might spot that their monthly wage has taken a hit.
It comes as many families are struggling with the rising cost of living.
Energy bills and supermarket prices have also gone up, putting pressure on household budgets.
The government announced measures to help people with their National Insurance bills, but the change won’t be implemented for more than two months.
In July, the threshold at which you start paying National Insurance will be increased to soften the blow for some taxpayers.
The earnings level at which people start paying the tax will be raised from £9,500 to £12,500.
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That change, which was announced in the Spring Statement, won’t come in until July 6 though.
It should mean hundreds of thousands of families will pay less – and some of the very lowest earners will dodge the extra charge altogether.
The threshold is rising by £3,000, meaning workers can earn that much extra without being taxed – that works out at a £360 a year gain.
Martin Lewis previously explained that workers earning £35,000 or below should pay less National Insurance in total this year.
But if your annual salary is £40,000 or higher, you’ll probably have to pay more.
Separately, the money saving guru has warned minimum wage workers that they could be being underpaid.
Make sure to check your pay slip to be sure you’re getting paid the right salary.
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