Any gains for lower half will be lost when income tax bills rise in April, says Resolution Foundation
The bottom half of earners will lose any gains from next week’s lowering of national insurance payments when their income tax bills go up in April, a leading thinktank has warned.
The Resolution Foundation said the combined effect of a cut in national insurance contributions (Nics) from 6 January and a freeze on income tax thresholds – pulling more people into paying higher rates as their wages rise – would only favour the top half of earners with incomes of £26,000 or more.
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