Workers set for new national insurance tax cut – how much will you save?

National insurance tax rates have fallen but frozen allowances may limit the benefits.

person looking at documents
(Image credit: Getty Images)

Millions of workers are set for a national insurance (NI) tax cut worth potentially thousands of pounds this financial year, but the savings may be limited.

Chancellor Jeremy Hunt used his Spring Budget to unveil a new NI cut, after already lowering the tax rate in his Autumn Statement.

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Salary12%10%8%Total saving
£20,000£891£743£594£297.20
£30,000£2,091.60£1,743£1,394.40£697.20
£34,944£2,684.88£2,237.40£1,789.92£894.96
£40,000£3,291.60£2,743.00£2,194.40£1,097.20
£50,000£4,491.60£3,743.00£2,994.40£1,497.20
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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.