Sumary of Health and Social Care Levy pushing families to the brink:
- Someone earning £20,000 will see their yearly National Insurance bill rise from £2,736 to £2,867. That’s a huge increase for someone on a tight budget!
- And by increasing National Insurance rather than Income Tax, the levy catches more of the poorest workers.
- That’s because National Insurance kicks in at £9,500 earnings per year, whereas Income Tax doesn’t start until you earn £12,570 per year.
- Why the levy could affect jobs Not only will workers face a bigger tax bill, but employers will also have increased costs with an extra 1.25% National Insurance to pay on salaries.
- For people trying to get their finances back on track, this latest tax rise comes as a body blow.