• Thursday, June 30, 2022

Headline story

New online cost of living tools launched to help Britons calculate their savings post tax cut

By: ShelbinMS

Workers across the UK will be able to go online, input their salary and see how much they could save thanks to the tax cut which comes in on 6th July.

New Financial Support and Benefits Checker Tool will also help people find the government support they’re eligible for.

A NEW online tool to show how the take-home pay of 30 million hard-working Brits will be boosted by the imminent £6 billion National Insurance tax cut was launched today (20 June).With the historic tax cut just weeks away, the online checker will use salary information to give employees personalised estimates of how much they could save because of the government’s changes.

The cut, which will see the point at which people start paying National Insurance rise to £12,570, is worth up to £330 and seven in ten workers will pay less National Insurance even after accounting for the Health and Social Care Levy.

Rishi Sunak, Chancellor of the Exchequer said: “With our historic £6 billion National Insurance tax cut just weeks away, this new tool will show hard-working Brits how much more of their pay will be going directly into their pocket.”

“This tax cut, combined with £400 off energy bills and direct payments of £1,200 to 8 million families, will help shield people from rising prices.”

Alongside this tool, the government has also launched a new Financial Support and Benefits Checker Tool. It enables people to answer 10 simple questions to find out what support they might be eligible for by cross-checking against 25 individual benefits and support offers. This should help people find out what support they may be eligible for that they may currently not be accessing and is part of the government’s drive to help people manage the increased cost of living.

Both tools will be hosted on the government’s gov.uk Cost of Living page.

The new online tax tool will give personalised estimates for employees paid monthly through the PAYE system of how the tax cut, which comes into effect from 6 July, will boost take home pay. This will help people budget during this challenging time by seeing how much they will be saving in tax.Everyone who pays National Insurance will see a tax cut, and the tool will show that employee earning up to £51,000 will see this cut more than offset the impact of the Health and Social Care Levy. This means the majority of working people will see a boost to their take home pay.

The tax cut is part of the biggest net cut to personal taxes in a quarter of a century, which was announced by the Chancellor earlier this year, and includes a cut to the basic rate of income tax of 1 percentage point from April 2024. This is the first cut to the basic rate of income tax in 16 years, benefiting 30 million taxpayers by £175 on average.

This tax cut comes on top of the £1,200 in direct payments the Government will provide for the most vulnerable people in the country and universal support worth £400 as a discount on energy bills from October.

This takes total Government support to £37 billion this year, helping tens of millions of people across the country from rising cost of living triggered by Putin’s illegal war in Ukraine.

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