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HMRC to give workers average £900 pay boost from April

DWP & HMRC payment dates for Christmas
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Starting on April 6, employees will get an average salary increase of £900 from HMRC, provided that their payslip contains the relevant code. This comes after the Chancellor recently announced various financial measures, including a worker tax relief, in the Spring Budget.

Your particular tax status will determine how much money you receive back, with some tax codes providing greater benefits than others. The government is altering National Insurance as of April 6th, resulting in a 2% decrease in your payment.

This tax was set up in the 1950s to fund the NHS and acts as a national ‘health insurance’ policy, says the Liverpool Echo. The upcoming tax cut is the second this year, following another 2% reduction in January.

So, the two cuts could mean an average boost of £900 this year. If you’re on the 1257L tax code, you could see between £200 and £750 back in your pay packet from April 6, depending on your earnings.

But remember, the change to National Insurance only affects people earning up to a maximum of £50,270 and only applies to those on the 1257L tax code, unless there’s a specific quirk to your tax situation, reports the Echo, reports North Wales Live.

If you paid too much or too little tax before, or you started a new job during the year, your tax code might change. But you’ll still get less National Insurance to pay. This only changes things for people with the 1257L tax code.

A representative for HMRC stated: “The government is cutting the main rate of employee National Insurance by 2p from 10% to 8% from 6 April 2024. Combined with the 2p cut announced at Autumn Statement 2023, this will save the average worker on £35,400 over £900 a year.”

“The government is also cutting a further 2p from the main rate of self-employed National Insurance on top of the 1p cut announced at Autumn Statement 2023. This means that from 6 April 2024 the main rate of Class 4 NICs for the self-employed will now be reduced from 9% to 6%. Combined with the abolition of the requirement to pay Class 2, this will save an average self-employed person on £28,000 around £650 a year.”

“The combined effects of these reductions to National Insurance also means that a person on the average wage now has the lowest effective personal tax rate since 1975.”

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Dulal Ahmed Chowdhury is the Editor of The Daily Dazzling Dawn. Previously, he has been serving in important positions in all the famous national dailies of the Bangladesh since the nineties. He has played a commendable role in journalism by participating in various events at the national and international levels. United Nations Conference, World Climate Conference, SAARC Summit are notable among them.

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