Tax changes for new tax year 2020/2021: Tax Cut from April 2020
New legislation introduced in January 2020 will see millions of taxpayers save around £100 in the financial year 2020-21. This is following the increase in the National Insurance Contributions threshold to £9,500 from April 2020. The previous threshold was £8,632 for the financial year 2019-20.
Chancellor of the Exchequer Sajid Javid said:
We’re determined to do what we promised and put more money into the pockets of ordinary hard-working people. That’s why we’re starting this government as we mean to go on, by cutting their bills.
We want everyone to feel that they can contribute to the new chapter we are opening for the economy and our country because under this Government work will always pay.
This is certainly good news for taxpayers and especially the self-employed. It is the equivalent of receiving an extra £100 in your pocket. Tell us – what would you do with an extra £100? We would love to find out. Leave your comments on our website