Key Points

• A rise in the level at which people start to pay National Insurance contributions – increasing the National Insurance Primary Threshold (PT) and Lower Profits Limit (LPL) from £9,880 to £12,570. This is a tax cut worth over £330 for a typical employee in the year from July 2022
• Reduction in Income Tax – Taxpayers will gain £175 on average thanks to a 1ppt cut in the basic rate of income tax in 2024, the first cut to the basic rate in 16 years.