Reversal of National Insurance rate increase confirmed
There are plenty of rumours about what tax measures might be included in tomorrow’s mini-Budget. However, a widely-expected change to the NI rates has already been confirmed. What do we know?
The new Prime Minister’s leadership campaign included a very vocal pledge to scrap the NI rate increase that took effect in April 2022. As a result, it is not surprising that this has now been confirmed. The NI rates for primary and secondary Class 1, Class 1A and Class 4 NI will all reduce by 1.25% from 6 November 2022, reverting to the levels they were at for 2021/22. The news article on GOV.UK indicates that the increases in thresholds, including the primary threshold, that took effect in July will be retained.
The article also says that it is “expected” that the Chancellor will reverse the increase to dividend tax rates, albeit not until April 2023.
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