AROUND 31million Brits are set to benefit from a £104 a year tax cut coming into effect next week.
From the start of the new tax year on April 6, the National Insurance Contributions threshold will rise from £8,632 to £9,500.
It means that hard-working Brits can earn more money before they pay tax on their earnings.
While those earning less than £9,500 each year will pay no National Insurance whatsoever.
Chancellor Rishi Sunak confirmed the change in the Budget earlier this month, although it was originally announced by predecessor Sajid Javid.
It will cut the annual tax bill for the average full-time worker by £104 and by £78 for the average self-employed worker.
The tax giveaway was central to Boris Johnson’s election manifesto.
The Tories have also pledged to raise the threshold to £12,500 by mid-2020, handing a £465 tax cut in total to the vast majority of the UK workforce.
The move is ultimately expected to take 2.4million people out of paying the tax altogether.
Mr Sunak said during the Budget: “As people earn more – we’ll also cut taxes on their wages.
“I am increasing, in just four weeks’ time, the National Insurance threshold from £8,632 to £9,500.
“That’s a tax cut for 31 million people, saving a typical employee £104.”
Last year, a top Tory said over-50s should face a £300-per-year national insurance tax hike to prevent a social care meltdown.
Tax rises could cost you £1,000 this year – here’s how to avoid them.
Meanwhile, parents who miss out on state pension should have national insurance contributions boosted, according to a government think tank.
