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National Insurance Rise Reversed in Nov 2022

The 1.25% rise in National Insurance will be reversed from 6 November and the government will axe a planned tax rise to fund health and social care.

NI is paid by employees, employers and the self-employed. The National Insurance rise was put in place in April by former Chancellor Rishi Sunak to help the NHS recover from the coronavirus pandemic, however during the Tory leadership race Liz Truss pledged to change it. New Chancellor Kwasi Kwarteng made the announcement ahead of a "mini-budget" on Friday and said "To raise living standards for all, we need to be unapologetic about growing our economy. Cutting tax is crucial to this.". Employees pay NI on their wages as well as income tax, employers pay extra NI contributions for staff, and the self-employed pay NI on their profits. People who earn more than £12,570 a year pay NI, and the more they earn, the more they will benefit from this change.

For example, somebody earning £20,000 will save about £93 a year, and somebody earning £100,000 will save £1,093, compared to now.

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