HMRC has updated the National Insurance (NI) threshold changes from July and launched an online tool to help people better understand how much tax savings the update will save.

This policy basically covers most groups, and from July 6, 2022, the threshold will be adjusted from the current £9,880 to £12,570.

This means that from 6 July the tax has been reduced by an average of £330 per worker (use an online calculator for details).

All employees pay lower National Insurance rates on this basis.


Check once you have the National Insurance

If your employer pays you the same amount every month through the PAYE system, you can use this tool to estimate.

This tool will not be suitable for the following groups of people:


You do not pay the main rates for UK Tier 1 National Insurance at the standard rates of income or profit - for example:
  • you are over the national pension age
  • you are self-employed
  • You pay less than standard rates
  • you work outside the UK
You have more than one employer, or you do not pay all of your income (or both) on an average monthly basis - for example:
  • you get extra bonus
  • commission you get
  • You get paid weekly instead of monthly

How to use the online tool



The government’s recent launch of an online check tool is a good way to help people visualize changes in rates.

The online tool will use the employee salary information paid by the PAYE system to perform a simple calculation on the numbers provided.

All you need to do is enter your current annual pre-tax salary and the system will automatically display the National Insurance rate changes.

As the picture shows:


Other online tools


The government has also introduced a new financial support and benefit check tool.

All you need to answer is a simple question, and the system will automatically screen you for other benefits and eligibility you may receive.

Financial support and benefit screening tools will include childcare support, jobseeker allowances and housing benefit policies, among others.

The next few months will continue to optimize the version of the current tool, and provide people with more convenient services and choices.

Access the government online tool.

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