Recent news has made people think about how shifts in tax and National Insurance (NI) might hit their wallets. 

HM Revenue & Customs (HMRC) reports that while overall tax revenue is up, NI contributions have dropped by over £1 billion compared to last year.  

This dip is tied to a recent Government cut to NI rates. 

The gap in NI has been filled by a rise in Income Tax.  

This is driven by wage growth, which is running ahead of inflation, and more people being pulled into higher tax brackets.  

In August alone, tax receipts rose by £9 billion compared to the same time last year. 

People are asking what all this means for their tax bills in the future. 

Though the drop in NI contributions might seem like a break, higher Income Tax receipts suggest that many workers are now paying more in taxes.  

This is mainly because of higher wages, which are pushing more people into higher tax bands. 

What does this mean for you? 

With rising wages and changing tax rules, it’s important to keep your tax planning up to date.  

Regularly checking your finances will help you avoid surprises when your next tax bill comes.  

By staying on top of things, you can make sure you’re using all available tax breaks, allowances, and deductions. 

If you have questions about your personal taxes or how these changes may affect you, reach out to us today for advice.