Independent financial adviser, Becky Hammonds provides highlights on the latest National Insurance changes.
Following the strange times of the last 18 months, we have just had what amounts to a Budget delivered by Boris and his Secretary of State for Work and Pensions. Not a word from the Chancellor. And unlike many other Budgets, this one has some real meat in it.
Here’s some highlights of what’s coming:
If you are an employee then you’ll be paying an extra 1.25% in National Insurance (NI) from next tax year. And if you don’t pay National Insurance now because you’re over State Pension age then you’ll be paying the 1.25%.
If you’re an employer then you too will be paying an extra 1.25% NI (something that was glossed over in the PM’s announcement).
And if you’ve got a company, don’t forget that you’re already facing a potential rise in your tax rate from 19% to 25% from 2023.
Budget Day has been confirmed as 27 October; it will be interesting to see what more follows then.
And if you earn your money through dividends then you to pay an extra 1.25%.
Who wins?
Well, there’s no new charge on pension income, or on interest or rental income; essentially it’s economic activity that is being hit.
For pensions and investment advice contact Becky Hammonds on 07969 269677 or email becky@willowfs.co.uk.
