The mind boggles, doesn’t it? Things never stay the same and that’s what makes Accounting daunting at times. We’re here for you though, remember?
Last month, we discovered that the Personal Tax Free Allowance hadn’t changed, but the Primary Threshold for National Insurance is about to! Have you taken note of how this will affect you from the 6th of July 2022 yet?
Comparing the last tax year to this new tax year, you can earn an extra £52 per week, yes, that’s an extra £225 per month without paying extra National Insurance!
National Insurance Primary Threshold information is as follows:
National Insurance Thresholds. Image courtesy of GOV.UK. For other rates, please check their website.
National Insurance Thresholds. Image courtesy of GOV.UK. For other rates, please check their website.
If employed, you’re Class 1 rate. This will mean working people will be able to earn £12,570 tax free, in cash terms, that’s an increase of £2,690 for the year (the £52 per week we mentioned earlier).
Have you checked how much you are earning? Can this be tweaked so that you can ensure you get the full benefit?
If self employed, you could pay Class 2 and Class 4 National Insurance. Check gov.uk for more details, click here for a helpful link.
Feeling unsure or a little overwhelmed? Please don’t, as that’s why we’re here.
We can guide you through what you need to know, do or change.
Book in your power hour here, TODAY, so you can sleep easy TONIGHT.