National Insurance

[maggiebee]

Journalists: If National Insurance is rising from 12% to 13.25% it is NOT rising by 1.25%. It is rising by 1.25 percentage points. If you want to describe its rise in percentage terms, it is rising by just over 10%. It's a 10% tax hike.

[gingejbee]

All references that I have heard have said "percentage points".

[jno]

hmm, two bees disagree.

Sky says "National Insurance contributions will rise by 1.25%"

https://news.sky.com/story/pm-announces-1-25-national-insurance-hike-to-pay-for-social-care-in-england-12401278

[Peter Pedant]

yes quite right moogie
BUT far too complex for AB

[ like the difference between mark-up and profit - just dont go there]

[New Judge]

//It's a 10% tax hike.//

No it's not.

National Insurance is only a small proportion of direct taxation. Somebody earning £20,000pa will currently pay £2,738 in tax and National Insurance. Under the new arrangements that same person will pay £2,868. This is an increase of £130, or 4.75%. A person on £50,000pa currently pays £12,338 and will pay £12,843 - an increase of £505 or 4.09%.

[david small]

£2,738 out of £20,000 plus £1,700 council tax. Then ridiculous rental charge. No wonder some don’t bother working.

[ToraToraTora]

maggie you seem to have learnt arithmetic, well done love.

[ToraToraTora]

..now would you have a go at applying that new found ability..............? oooops thought not!

[Peter Pedant]

Mogz I told you not to go there
(You get used to the most moronic and stupid answer getting the most popular support...just ignor and watch tel)

[gulliver1]

Stop It Maggie you are confusing TGT.

[ynnafymmi]

I had this argument with some nationalist eejits a while back regarding the Brexit debate.Up here in Scotland,29% of SNP voters voted for Brexit,only 27% of Tory voters(in Scotland)voted for Brexit and only 19% of Labour voters(in Scotland)voted for Brexit.Sturgeon seems to think her party was unanimous in voting for Remain.These percentage points can be problematic,cant they maggie...

[ToraToraTora]

yes maggie you are correct with the arithmetic but tax hikes and mortgage rates etc are always percentage points not percentages. That been the way for 100s of years. Not sure why you now decide to mention it.

[ToraToraTora]

....oh I meant the arithmetic of 12 raising by 1.25, it's NOT a 10% tax hike.

[dannyk13]

It is actually more than 10% :-
Percentage Calculator: What is the percentage increase/decrease from 12 to 13.5? = 12.5.

[dannyk13]

Sorry ignore that. Corrected to:-
Solution for What is the percentage increase/decrease from 12.5 to 13.25:
(13.25-12.5):12.5*100 =

(13.25:12.5-1)*100 =

106-100 = 6

[ToraToraTora]

this is raising 12 by 1.25 = 1.25/12*100=10.41% end of.

[jno]

always percentage points not percentages

they always are, but journalists none the less sometimes misdescribe them, as maggiebee suggests (I gave an example at 19:01).

[sevenOP]

NJ,
your figure @ 19:10 Wed 08th Sep 2021 seem to imply that a person on £50,000 pa pays 32.96% tax and NI and and somebody earning £20,000 pa pays 36.85% tax and NI.

The increase in the NI rate is 10.41%.

[bobbinwales]

Don't see your maths there 7op. 2738 out of 20000 is nothing like 36.85%

[sevenOP]

It is not based on £20000, bobbinw

https://www.gov.uk/income-tax-rates