Cost of living – Employee Savings
We’re about getting people saving but we’re also here to help our customers become less stressed about money. We’re about straight talking...so here it is!
Let’s get some extra money into your pocket – every penny counts at the moment
You might not think that your pension can put some extra money in your pocket, but it can. If you’re employer lets you pay into your workplace pension through something called salary exchange (aka salary sacrifice) and you’re not doing it, get into the scheme now!
It’s real no-brainer and can put an extra £200 a year into your pocket if you’re earning £30k a year.
If you’re employer doesn’t already offer this facility, then speak to them about it! It doesn’t cost them anything to put in place but depending on how they do it you might be in for a 1.4% salary increase – at no cost to them!
When you speak to them or email them give them this link which will tell them everything they need to know! It’s easy to set-up and it won’t cost them anything but can really help you!
Latest changes to tax – what they mean to you
As you will probably have seen, the latest changes announced in the mini budget have not been seen as all positive…but if we cut through the media noise, there is some good news for most people.
National Insurance Contributions
Back in April the amount you and your employer pay in National Insurance was increased by 1.25%, but thankfully this is now being reversed so you’ll pay the reduced amount of 12% from 6th November.
If you earn less than £12,570, you don’t pay National Insurance so this change won’t affect you. But if you earn £30k a year, you’ll save about £218 a year.
Income tax
From April 2023, the basic rate of income tax (the amount of tax you pay over your personal allowance which normally £12,570) will reduce from 20% to 19% which means for a person earning £30k a year, you’ll have an extra £392 a year in your pocket.
Article by
NatWest Cushon
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