Personal taxes are rising, despite cut in National Insurance

In 2024 despite the National Insurance rate cut the planned freeze in income tax and National Insurance thresholds and allowances in April result overall in a tax increase according to a briefing from the Institute for Fiscal Studies.

The report says the effects of these measures will vary depending on income. For example an employee earning £35 000 will gain about £130 more from the National Insurance cut than they lose from this April’s freeze in thresholds while those with slightly higher earnings will gain more but employees earning less than £29 000 will almost all lose out.

The institute said: ‘Considering all of the reforms to rates and thresholds of income tax and NICs from 2021 up to and including 2027-28 these taxes will be rising for almost everyone who pays them. That is a tax increase...