For many employees, it’s pay day this weekend. Given the changes to National Insurance, this calculator estimates how much less you’ll pay.
This National Insurance calculator from HMRC and HM Treasury gives you an estimate as to how much less you can expect to pay following the reductions in effect from this month.
As part of Jeremy Hunt’s 2024 Budget, he confirmed National Insurance will be cut by 2p, taking the rate from 10% to 8% from 6 April.
This followed on from the previous National Insurance Contributions (NICs) cut from 12% to 10%, which came into effect from 6 January 2024.
The calculator helps employees see National Insurance savings in your April pay packet, compared to March, and also compared to December 2023 before the first reduction was implemented.
Here are some estimates of National Insurance savings based on varying salary ranges:
- £20,000: You’ll pay £49.53 in NI – £12 less in April compared to March, and £25 less in April compared to December. The equivalent reduction in NICs over 12 months equals £297.
- £30,000: You’ll pay £116.20 in NI – £29 less in April compared to March, and £58 less in April compared to December. The equivalent reduction in NICs over 12 months equals £697.
- £40,000: You’ll pay £182.87 in NI – £46 less in April compared to March, and £91 less in April compared to December. The equivalent reduction in NICs over 12 months equals £1,097.
- £50,000: You’ll pay £249.53 in NI – £62 less in April compared to March, and £125 less in April compared to December. The equivalent reduction in NICs over 12 months equals £1,497.
- £60,000, £70,000, £80,000, £90,000 and £100,000+: £63 less in April compared to March, and £126 less in April compared to December.
While the calculator provides a good estimate of how much less employees will pay in NICs, you may want to head over to MoneySavingExpert.com. Its income tax calculator includes advanced options such as pension contributions and student loan payments to help you work out exactly how much you’ll have in your monthly pay packet.
National Insurance rates have gone down for self-employed workers too – following the 1p cut in the Autumn Statement last year, from 6 April the main rate of Class 4 NICs reduced to 6%, after standing at 9% the year before.
