National Insurance rise to be reversed in November

36 comments
  1. So is this the shortest tax rise in history? So quickly reversed

    Will the government refund me the money I lost from this?

  2. It should never have risen in the first place, as basically everyone told them when they brought it in. And now here we are.

    I think I can hear a football crowd chanting *you don’t know what you’re doing, you don’t know what you’re doing*…

  3. Thank god they saw sense over this. They should never have put it up in the first place. Cost of living crisis? Let’s put tax up. What a dumb idea.

  4. TBH, I thought that the idea was good (The NHS needs the extra investment) but the timing was beyond bad.

    If the economy had returned to normal I’d have applauded it but they knew how bad it was going to get yet still introduced it. It just shows how out of touch the government has been.

  5. Whilst I’ll always welcome extra money in my pay packet, I want to know how they will be funding social care without this ring fenced money? The NHS desperately needs more funding due to an ageing population, where is that money coming from if not through increased taxes?

    “Growing the economy” isn’t an answer as every government since year dot has wanted to grow the economy so how is this government going to do anything different?

  6. Better late than ever. What’s horrible is that they will not go further. Increase the taxes for the wealthiest and tax Amazon to the ground

  7. So we are increasing interest rates, to slow investments. And at the same time we are reducing taxes to grow the economy. Do any of them know what they are doing?

  8. This is so stupid and short sided instead of keeping this for a year and raising the money that’s needed there instead going to need to borrow more money when the £ is at the lowest point in decades and push repayment prices up even further.

  9. I am pleased to see it reversed. I was incredulous when it was introduced because it claimed to be funding the NHS and social care whilst only being borne by working people, as though landlords and others with passive income do not use the NHS. NIC is a fundamentally unfair tax because it does not tax passive income, and so for this burden to be borne purely by people who have no choice but to work was appalling.

    I am not averse to paying higher taxes to fund social causes provided that those with the broadest shoulders bear the most. Under this, and a vast majority of Tory tax policies (certainly under these far right Tories), they do not.

    I suspect though (as others have alluded) the cut for employees is simply so that that can cut the employer’s element, and so cling desperately to the fully debunked “pro business” claim.

  10. Sounds like the extra social care this was supposed to fund is still going ahead so this reads like a good thing to me. Is Truss just doing it to try and win votes in a few years? Probably

  11. the national insurance rise was “sold” to us as necessary to pay for social care, I doubt that this social care burden is immune from inflation so it makes no sense to cut the tax they said was going to be helping to pay it

  12. To the government can’t afford to give the public sector a proper payrise but can give me a whole £53 a year 🙄

  13. It is good that it is being reversed – from a net pay perspective, I would rather they had increased the tax free amount so people on lower salaries would have benefited more.

  14. Correct me if I’m wrong, is it possible that those who are employed would get a refund if this change happens? I don’t quite understand it.

  15. This is daft but how much of it is Truss wanting to put one over on Sunak as it was increased by him. I don’t think a new party coming in would’ve reversed it this quickly

  16. Why do articles always mention the 1.25 percentage points increase but fail to mention it was a 10.25% increase in real terms?

  17. Only important part for people is –

    > Most employees will get the tax cut in their November pay packets, with some getting it in December or January “depending on the complexity of their employer’s payroll software”, the Treasury said.

  18. Does that mean that people under the 12.5K threshold have to start paying NI again if they go over the weekly threshold? Cuz with the Boris change you didn’t pay any.

  19. Thank goodness, I’ll be glad to have my £50 a month back. I would happily fund the NHS more, but we all know this was lining Tory mates pockets and that throwing money at the NHS does little to improve it. Personally I’ll be spending this money in local businesses, so hopefully it at least helps someone out.

  20. Delighted to keep more of my money.

    Let the elderly mortgage-free home owners pay for their own long term care, not the young & not-so-young who increasingly are unable to buy.

  21. The NI will save people on 50k+ ~£1500 p/y and the change of the lower tax rate from 20% to 19% which will be ~£384 p/y.

    Both changes for the lower earners will depreciate based on how much you earn – so could be a tiny amount compared to the static energy price rises we have already seen in the past year prior to the “freeze”.

    But it’s ok, all is going to be fine. Tax on 150k+ have a rate cut from 45% to 40%….

    So an earner on £200,000 is set to not only save £1884 p/y- like the others earning over 50k – they are also now be saving £3,478.50 p/y due to the abolishment of the higher tax rate (45% rate)- So a total saving of £5362.50 p/y compared to today. Well deserved, lets uncap their bonus’ while we’re at it.

    I mean what he actual fuck?

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    The stamp duty changes, just in time for escalating interest rate hikes…

    It’s so blatant now its unreal. “We have to cut taxes so that families can keep more of their money… Oh no.. not your family – the family with the Range Rovers on their drive”.

    ​

    I guess they have now realised they only have 2 years to subjugate the peasant class once and for all.

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