Autumn statement – National Insurance tax change plus ways to help cut your tax bill
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The headline grabbing National Insurance cut might look like good news, but the tax burden is still set to be the highest it’s been since the Second World War. Here’s what’s changed and what you can do to reduce your tax bill.
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Published on 30 November 2023
It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.
A cut to National Insurance (NI) in the autumn statement looks like great news for struggling budgets. But the harsh reality is we’re still set for a post-war tax burden high, and this barely makes a dent.
Thresholds for income tax as well as NI have been frozen and are set to remain the same until 2028 – with the additional rate threshold for income tax reduced earlier this year. As wages rise, more people are being dragged into paying more tax. This is known as fiscal drag.
Total tax receipts and NI contributions for April 2023 to October 2023 are £457.3bn, a whopping £23.9bn higher than the same time last year.
As long as rates stay frozen, this trend is likely to continue. Nearly four million more people are expected to be paying
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