Autumn Budget Statement
Little benefit to lower and middle earners from NIC changes
Neither lower nor middle earners will see much benefit from changes to National Insurance Contributions
Nimesh Shah, CEO said:
“The 2% NIC reduction is worth up to £754 per annum. Lower earners do not benefit as much from the NIC reduction, and increasing the personal allowance in line with inflation would have been more helpful. For those earning over £150,000, the NIC reduction provides some relief against the cut to the additional rate threshold to £125,140 announced last year.”
However, ‘squeezed middle’ earners are also finding no relief in the statement and are still bearing the brunt of high tax burdens.
“The frozen allowances and tax threshold continue to cause pain for middle earners – someone earning £60,000 is only £2,893 better off when compared to 2010/11, which is the equivalent of £200 per annum. When taking account of inflation during that period, that is a real terms hit of almost £17,000.”
Would you like to know more?
If you would like to discuss any of the above issues please contact your usual Blick Rothenberg contact Nimesh Shah using the form below.