How will your payslip be impacted by the new national insurance threshold?

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How will your payslip be impacted by the new national insurance threshold?
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The national insurance threshold was raised yesterday: how will you be impacted?

Written by Vicky Shaw, PA Personal Finance Correspondent

NI starting thresholds will rise from £9,880 to £12,570 from July 6, meaning many people will see more money in their pay packets from this month.That depends on how much you earn and whether it was enough to meet the previous threshold. Nearly 30 million working people will benefit, with a typical employee saving over £330 in the year from July, according to the UK Government.

With everyday prices such as food and fuel rising sharply, some households may not feel better off in practice, even with more money in their pay packet. On a £40,000 salary, they would have paid around £304 per month before April and seen this rise to £333. This will now fall to around £303. Back in 2019/20, the total number of higher rate and additional rate taxpayers combined was approaching 4.3 million.

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