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Make Sure You Benefit From The National Insurance Cut

Temporary workers, umbrella workers and zero hours workers operating via PAYE should benefit from £450 a year tax cut, but many don’t realise they’re entitled to it.

Make sure you check your payslip for to ensure you benefit from the recent cut in National Insurance Contributions (NICs) worth, in some cases, £450 a year.

This month’s cut to employee National Insurance – from 12% down to 10% – applies to employees earning more than £12,570 a year. According to the government, this tax reduction could save the average two-income household nearly £1000 annually.

Also set to benefit from this move are many of the UK’s 1.6m-strong army of temps, including umbrella workers, zero-hour contract workers and those engaged via employment agencies.

The fact that most temporary workers will also benefit from this welcome tax cut has flown under the radar to a degree. This boils down to long-standing confusion among temporary workers about the rights and benefits they should receive.  That’s why we are urging everyone to read their payslip.

In fact, along with checking to make sure that you’re benefiting from this tax cut immediately, whether your payslip reflects this change could also signal if you’re operating through a tax avoidance scheme. If you aren’t paying less National Insurance but your gross pay rate has stayed the same, then you have questions to ask.

You should check your payslip every time you receive it, not just once in a while.  It also makes sense to regularly check your personal tax account with HMRC to ensure that they are receiving the correct tax and national insurance that has been deducted from your wages.

 

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