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<p>In recent years the government has taken significant action to support lower earners
through the tax system. The significant increase to the NICs starting thresholds in
July 2022 means that all workers can now earn £1,000 a month before paying any tax.
A UK employee can earn more money before paying income tax and Social Security Contributions
than an employee in any other G7 country.</p><p> </p><p>At Autumn Statement 2023,
the Government cut the main rate of employee National Insurance by 2pp from January
2024, as well as cutting and reforming taxes for the self-employed from April 2024.
As a result of above-inflation increases to thresholds since 2010, and the Autumn
Statement 2023 NICs cut, an average worker in 2024-25 will pay over £1,000 less in
personal taxes than they otherwise would have done. From April, a full time National
Living Wage worker’s take home pay will be 30% greater in real terms than it was in
2010, due to successive increases in the National Living Wage and changes to personal
tax rates and thresholds.</p>
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