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National Insurance: Boris Johnson and Rishi Sunak confirm rise from April

Business / Sun 30th Jan 2022 am31 08:37am

A PLANNED £12bn rise in National Insurance from April is “the right plan” and “must go ahead”, Boris Johnson and Rishi Sunak have said reports the BBC.

In an article in the Sunday Times, the PM and chancellor said the rise – which applies to employees and employers – will help clear the NHS backlog.

Despite opposition, including from some Tory MPs, they say it is “progressive” because higher earners pay more.

With inflation rising sharply, there had been calls to scrap the tax rise.

Under the plans, employees, employers and the self-employed will all pay 1.25p more in the pound for National Insurance from April 2022 for a year.

After that, the extra tax will be collected as a new Health and Social Care Levy.

The changes to National Insurance will see an employee on £20,000 a year pay an extra £89 in tax. Someone on £50,000 will pay £464 more.

From April, people earning under £9,880 a year, or £823 a month, will not have to pay National Insurance and will not have to pay the new levy.

Critics have said the increase will have a higher impact on the lower-paid and could contribute to inflation when household budgets are under pressure from rising energy prices and food bills. 

And business leaders have warned that firms could offset the tax rise by raising prices. 

Inflation – the rate at which prices are rising – is already at a 30-year high, reaching 5.4% this month.

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4 Comments for National Insurance: Boris Johnson and Rishi Sunak confirm rise from April:

Laura
2022-01-30 09:15:18

Of course take more money from working people who already struggle to meet end of the month ( even that are working full-time!!!!!! ),believe me £200 a year is a big difference to have it or not. This government is a disaster and i know that money will not go to Healthcare and will not sort out the issue. Because the issue is lack of staff mainly.

Jawad Sharief
2022-01-30 09:59:32

Yes i believe everybody that has a good job should pay tax it's the ethical thing to do and the right thing to do what's £89 to having a £20,000 a year job be grateful it's paying for schools universities firefighters police library's ambulance staff hospitals and health and social care be grateful the uk economy is growing furiously and if you keep your costs down and get a high salary your laughing and you can invest the surplus thank you

Adam
2022-01-30 10:57:10

Absolutely terrible, this rise should be abolished, couple this with the energy price rising, council taxes rising (which comes out of already taxed income) we pay more than enough in taxes to receive world class services the issue is one of allocation and efficiency. Sadly the public sector and large consulting companies which feed like vultures of government contracts would not know either if it jumped up and slapped them in face. This is going to once again hit the poorest in society

David Forman
2022-01-31 11:00:01

A reminder of Labour's National Insurance increases with Guardian article from April 2010: 'National insurance was today back at the centre of the pre-election campaign as Alistair Darling insisted his planned increase in the tax would not cause job losses, while the Conservatives stepped up efforts to show it is Labour's favourite "stealth tax".' "The last time NI went up was in 2002 … employment after that went up," Darling told BBC Radio 4's Today programme. "Why? Because the economy was growing after that." https://www.google.com/amp/s/amp.theguardian.com/politics/2010/apr/05/national-insurance-labour-tories

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