The money saving expert has issued advice as the cost of living crisis continues to grip the nation (Picture: Ken McKay/ITV/REX/Shutterstock)
Martin Lewis has issued advice on how you can expect a boost from your pay check this month.
Millions watched on as the money saving expert revealed tips on his ITV show on Tuesday night.
Mr Lewis unveiled 12 key hacks on how to save cash this winter – such as changing your boiler setting, not draining your bath and using clingfilm on windows to retain heat.
He also discussed how people earning more than a certain amount are set for a financial boost from pay checks in coming months.
Mr Lewis’ advice relates to a change to how much National Insurance (NI) people pay, since the rate was reduced from 13.25% back to 12%.
Around 28million people across the UK will now keep an extra £330 a year on average in the 2023/24 tax year, the Mirror reports.
The Government also claims that the majority of businesses will also see a reduction in their NI bills – and save an average of £9,600 each in 2023-24.
Mr Lewis broke the news to his millions of viewers on his ITV Martin Lewis Money Show Live this week.
A change in National Insurance rates could result in savings for many (Picture: Getty Images)
He said: ‘Expect more in your take-home pay this month. Most National Insurance rates dropped to 12% (1.25 percentage points).’
Below is a breakdown of the expected savings, as set out by the Government
If you earn £12,570 – £0 gain per year
If you earn £15,000 – £30 gain per year
If you earn £20,000 – £93 gain per year
If you earn £40,000 – £343 gain per year
If you earn £75,000 – £780 gain per year
Mr Lewis’s advice follows a year of back-and-forth Government changes for National Insurance rates.
When do you start paying National Insurance?
You start paying for National Insurance if you’re over 16 years old and earn or have self-employed profits over a certain amount.
You have to pay mandatory NI if you are:
An employee earning above £242 a week
Self-employed and making a profit of £6,725 or more a year
National Insurance is a tax on your earnings that go towards funding the likes of the NHS, pension schemes, unemployment benefit and sickness and disability allowances.
The amount of National Insurance you pay depends on your employment status and how much you earn.
In March, Rishi Sunak said the threshold for paying National Insurance would increase by £3,000 this year.
Delivering his spring statement, the then-Chancellor announced that people would be able to earn £12,570 a year without paying any income tax or National Insurance.
Mr Sunak claimed the £6 billion move was a personal tax cut for 30 million Brits and ‘the largest increase in a basic rate threshold ever.’
After Liz Truss took the reigns of No 10, with Kwasi Kwarteng as her Chancellor, it was announced that the hike would be reversed from November 6.
Even though Mr Sunak, behind the initial calls for a higher threshold, is now PM, the tax rise cancellation is still going ahead.
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A change in National Insurance rates could result in savings for many.Â
