National insurance will be reduced from 12% to 10% on salaried benefits between £12,570 and £50,270 from Saturday.
The change, announced through the Chancellor in the autumn, affects around 27 million workers across the UK.
A user earning an average salary of £35,000 in the UK will save £450 per year, or £37. 38 per month, thanks to this change.
Use our tool below for a rough guide to what tax changes can be expected for most people, as there are other variables not included which might affect how much tax you pay including being in receipt of the blind person’s allowance or the marriage allowance. It also assumes you are not self-employed and are under pension age…
There will also be cuts to national insurance for the self-employed from April. This includes the removal of Class 2 contributions, as well as a relief in the Class Four contribution rate from 9% to 8% for the £12,570 to £50,270 source income bracket.
This is only about two million self-employed, according to the Treasury.
While many campaigners welcomed the announcement of National Insurance last autumn, they pointed out that the tax burden remains at record levels for Britons, thanks in part to the freezing of the threshold at which other people start paying income tax, compared to emerging countries. with inflation.
NatWest Group chairman Sir Howard Davies clarified what we reported earlier, when he told the BBC that it wasn’t “that difficult” to climb the property ladder.
After seeing how it was printed, Sir Howard, whose salary is £764,000, tried to tame the negative headlines.
He this afternoon. . .
“Given recent movements in lenders’ interest rates, there are some early signs of emergence in loan prices and while investment remains strong, my comment was intended to reflect that in this context, access to loans is less complicated than it has been.
“I fully realise it did not come across in that way for listeners and as I said on the programme, I do recognise how difficult it is for people buying a home and I did not intend to underplay the serious challenges they face.
“People have to save much more than they did in the past and that is tough for first-time buyers.”
By Ollie Cooper, Money Team
We’ve all heard repeated recommendations about drinking to such an extent that it almost becomes a cliché. Well, every Friday, the Money team will get to the bottom of another “fact” and make a decision whether it’s a myth or a necessity. . . Starting today with. . .
“Boiling water in a pot is much less expensive than in a kettle”
You can boil water in a number of ways – but what’s the most cost effective?
To pick up another cliché, is using a quick and convenient kettle the same as throwing money down the drain, and do we deserve to use a pot on the stove to make a beer?
We spoke with GoCompare’s energy expert, Gareth Kloet, to find out.
Gareth used GoCompare’s power calculator to calculate that a kettle costs around 4p for 3 minutes, the average time it takes a whole kettle to boil.
The microwave costs about 1p to use for three minutes, but he notes that “boiling water in this way means it has to be watched to make sure it doesn’t boil over, unlike a kettle”.
“You can also boil water on the cooktop, but how long it takes will depend on the cooktop,” says Gareth.
Boiling more than a few cups of water on the stove can take five to ten minutes.
For an electric hob, this can cost between five and ten pence.
But the cost of running a fuel plate is much cheaper, estimated at 1p for the same amount of time, although those figures vary depending on the power of the plate.
With Gareth’s help and knowledge from the Centre for Sustainable Energy and British Gas, we’ve combined this chart to help you make the most productive decision.
With all this in mind, it turns out to be a myth: boiling water in a pot can be even more expensive (if you’re an electric hob), but there are less expensive tactics to do so.
Make up your mind about burden and convenience, now that you are completely master of the facts.
A series of storms throughout this winter have caused extensive damage to homes and businesses across the UK, with many homes rendered uninhabitable due to high winds or flooding. So, can this increase homeowners insurance premiums for all citizens?
The head of general insurance at the Association of British Insurers, Mark Shepherd, said the cost of the most recent flooding was not yet clear.
He told Business Live With Ian King that common storms were “starting to generate fair prices for insurers. “
When asked if this could simply increase premiums, he said he was sure it would be a fear for people, even if premiums are set based on a “series of questions. “
He said it would be “unusual” for a single major weather event to affect prices across the board, but “we are clearly seeing more common and volatile weather events in the UK” due to climate change.
This is “increasing risk” and “increasing cost”, Mr Shepherd said.
People are looking for insurance to make sure they get the most productive prices, he said.
By Ollie Cooper, Money Team
The first Saturday after the festive season is nicknamed Sunshine Saturday in the UK industry as it is often the most popular day of the year for tourists to book their holidays abroad.
But in the middle of a cost of living crisis and a travel industry still recovering from the aftermath of COVID, what can we expect from this year’s Sunshine Saturday?
What to expect
We asked a few corporations what they think the weekend will bring, and the vast majority of them feel pretty safe.
TUI UK & Ireland advertising director Phillip Iveson told us he expected the massive turnout of previous years to be repeated this weekend, while a spokesperson for Jet2holidays said he expected “the same onslaught of Sunshine Saturday”.
Jonathon Woodall-Johnston, chief operating officer of Hays Travel, said he expects it to be “the most important Saturday of the year. “
Most media outlets have already noticed the call for after Christmas and New Year’s, and no deals have been closed yet.
Deals, you say?
Exactamente. Se families confined during the school holiday calendar are expected to be the biggest beneficiaries, and experts suggest that costs may not come down much for them this year.
Key offers include £50 off per user on all public holidays on Jet2vacations, or up to £300 off public holidays on TUI.
Don’t be afraid to take a look at suppliers; you’ll possibly find some gems, such as Easyjet Holidays, which offers up to £300 off every booking made through Hays Travel.
There are also offers on small details, such as a 20% discount on insurance policies at Holidaysafe.
Hays’ Woodall-Johnston said Spain, Portugal, the Canary Islands and Turkey are popular on a sunny Saturday, so you may have to expect deals in those destinations.
There’s a but…
It’s never all sunshine and rainbows, even on Sunshine Saturday.
New Year’s Eve sales aren’t the only opportunity to get a discount, so if your wallet is feeling a little empty after Christmas, don’t feel stressed about participating in what, really, is just a big marketing event.
Vix Leyton, consumer expert at hotukdeals and host of the False Economy podcast, is keen to warn consumers about the likelihood of hidden costs and hidden small print.
“The excitement around red stickers and the promise of significant discounts can lead to hasty decisions that one pays for later,” he told us.
A lot of deals include flights at bad times, no transfers at the other end, or bookings through third party sites that incur fees, she warns.
“While there will be some signature chords you’ll be interested in, many of them will come down to savings you could make at another time of year with smart shopping,” he said.
How can I myself before Sunshine Saturday?
The Traveler Protection Scheme, ATOL and the UK Aviation Authority have suggested consumers take care when closing their deals.
We’ll list a few tips below, but probably the most important is to check their terms and conditions to make sure your holiday is via ATOL.
What does this mean? Well, the ATOL plan steps in to ensure that you aren’t left out if your vacation business closes: helping them return home if they’ve already done so or allowing them to file a claim if they haven’t traveled yet. . .
In other words, it’s insurance for your vacation package (not travel insurance, which is actually a must).
Here are some other things to do before Sunshine Saturday:
In comments that probably surprised many renters and young people, the chairman of NatWest stated that it is not “that difficult” to climb the ladder of the UK property sector.
Sir Howard Davies, chairman of the major retail bank, didn’t quite tell people to unsubscribe from Netflix and cut back on their daily cappuccino, but the tone was similar.
He said prospective buyers want to save and “that’s the way it is. “
It follows our 9:14 a. m. article on emerging asset prices.
Asked on BBC Radio 4’s Today programme when it will be less difficult for Britons to buy a home, Sir Howard replied: “I don’t think it’s that complicated at the moment. “
Sir Howard continued: “What we saw in the currency crisis was the threat that other people could borrow 100 per cent to buy a house and then suffer a significant drop in the value of their home and be forced to abandon their homes and have a bad credit report, so there were threats of accessing loan credit very easily.
“I fully recognize that there are other people who find it very difficult to start the process, they will have to save more, but I think this is inherent in replacing the monetary formula as a result of the mistakes that have been made. “”During the last global currency crisis. “
Over the course of five days, Ian King discusses five points that can have a significant impact on the cash you’ll need in 2024. Yesterday he looked at where interest rates could go and today he’s looking at fiscal adjustments in the coming months. . .
Although there will inevitably be adjustments to the tax formula at the start of the fiscal year in April, we only have to wait until the first major change, i. e. the entry into force of the recently announced discounts on social security contributions.
The main rate of Class 1 NIC for sources of income up to £50,270 will be reduced from 12% to 10%; The more sensible rate of 2% for sources of income above £50,270 remains in place.
This will be followed on April 6 by discounts on NCI Class 4 for freelancers of 9% to 8%, while no self-employed users will have to pay NCI Class 2 from that date.
The new fiscal year will also see increases in child benefits and the current tax credit. While the spring pre-election budget is expected to include tax cuts, April 6 would possibly see additional unannounced changes, adding tax cuts on the source of income and the widely announced inheritance taxes.
Check back next week for my research on how pensions, inflation, and savings will impact in 2024.
The average price of petrol across the UK fell by 6p a litre in December to under 141p.
These are two consecutive monthly declines, according to CAR data.
The latest drop means a full 55-litre petrol tank now costs £77.32, down by £3.40.
Diesel also fell 5p to 149. 18p, saving £2. 86 on an average refuelling.
The value of unleaded gasoline has now returned to a value last seen in early February 2022, before Russia’s invasion of Ukraine sent the value of oil soaring.
Despite this, the RAC claimed that prices will be even lower and accused the big four supermarkets of making too large margins.
He estimates that supermarkets could easily charge around 132 pence for petrol.
Petrol prices are also five pence cheaper in Northern Ireland, where petrol costs around 13. 5,28 pence per litre and diesel, 144. 2 pence.
RAC Fuel spokesperson Simon Williams said: “We continue to call on the larger shops to play fair with drivers and reduce their costs to match those charged in Northern Ireland. “
You won’t forget we told you that teenage darts sensation Luke Littler would end up paying £83,000 to the government tax after raising £200,000 for completing a moment at the World Darts Championship.
Sky News also tweeted about it, and it provoked a sarcastic, and some would say right, reaction from HMRC’s press team. . .
The tweet garnered many likes, but a review of the comments suggests that many were dissatisfied with the tone.
Here are some of them:
@ENGsporty said: “Sarcasm isn’t needed from the HMRC, thanks. It’s a terrible look for you.”
@jdmlon took stock: “And what about corporate taxes for companies like Amazon?Witty jokes about them ???”
For self-assessment humor enthusiasts, Kit Harris wrote: “Presumably rate him an extra £83,000 ‘as a deposit’.
Daniel Oliver: “Nothing about this Tweet. Inappropriate. “
@IamHappyHiker responded: “I think it’s quite a nasty and condescending reaction from HMRC; possibly it would be technically accurate. “
And Python Maps, obviously a scholar of the American Revolution, noted, “You can’t vote. There can be no taxation without representation. “
HMRC’s tweet made headlines in the Sun and Mirror this morning.
By Daniel Binns, journalist
Endeavour Mining suffered a major blow to the FTSE 100 this morning after its chief executive, Sébastien de Montessus, was forced out of the company last night for “serious misconduct”.
He was removed following a board investigation into the company’s finances.
The company said allegations had also been made about his “personal conduct” with colleagues. M. de Montessus told the Daily Telegraph that he had denied any wrongdoing.
Shares of the miner fell more than 14% in early trading.
Overall, the FTSE index is down 0. 8% in early trading following the Bank of England’s revised bets on interest rate cuts.
Money markets are now pricing in cuts of 1. 3 issues in 2024, up from 1. 5 issues this previous week, suggesting a moderation in optimism.
Another thing to watch in the markets today is the effect of new US employment data, due to be released at 1. 30pm UK time.
These numbers may give just one indication of when the Federal Reserve will begin cutting rates.
Meanwhile, amid ongoing focus on tensions in the Middle East, oil prices are stable this morning.
On Thursday, Brent crude rose as high as $79 (£62) a barrel but has now fallen back to $78 (£61), the same value as at the start of the week.
By Daniel Binns, journalist
House prices have risen for the third month in a row, according to new figures from the Halifax.
The bank said the average home in the UK stood at £287,105 in December, up 1. 1% from last month.
Halifax head of mortgages Kim Kinnaird said the market also beat expectations in 2023, growing 1. 7 percent annually.
This differs from research conducted by others: Average space costs ended up falling as much as 1. 8%, according to Nationwide.
Kinnaird cautioned that the recent expansion is likely due to a shortage of homes on the market, rather than strong customer demand.
But he added: “That said, as lending rates continue to fall, we would possibly see an increase in customer confidence in the coming months. “
This comes as lenders have recently cut lending rates, amid expectations that the Bank of England will cut interest rates this year as inflation continues to fall.
Imogen Pattison, an assistant economist at Capital Economics, said the figures “confirm that falls in mortgage rates are translating into renewed increases in house prices”.
He added that costs were poised to decline in the first quarter as lending rates fell.