Summary
The article discusses potential changes to National Insurance (NI) and income tax in the upcoming November Budget. Chancellor Rachel Reeves may update the thresholds for when people start paying these taxes, despite previous pledges not to increase taxes for working people. National Insurance is used to fund benefits and the NHS and is paid by employees, employers, and self-employed individuals in the UK.
Key Facts
- The government's November Budget might include changes to National Insurance and income tax.
- Chancellor Rachel Reeves may alter the tax thresholds, impacting when people start paying taxes.
- National Insurance funds benefits and the NHS in the UK.
- Employees, employers, and self-employed people pay National Insurance, except those over pension age.
- As of 2025, employers pay a 15% NI rate on wages over £5,000, and on employee benefits.
- Income tax in the UK starts on earnings over the personal allowance of £12,570.
- Different income tax rates apply in Scotland compared to England, Wales, and Northern Ireland.
