National insurance explained: Why we have it and how changes could affect you

National insurance explained: Why we have it and how changes could affect you

Jeremy Hunt (Photo: Kirsty Wigglesworth/Getty) Jeremy Hunt, Britain’s Chancellor, decided to cut UK’s second-biggest tax – national insurance (NI) contributions – by 2 percentage points in Wednesday’s Budget.

It was a move that he said will benefit roughly 27 million employees and two million self-employed people.

He has since hinted he may abolish the tax as a whole and instead merge it with the income tax. Considering it is expected to bring in £172.3bn – 6.7 per cent of national income – this could be difficult.So why do we have national insurance – and how will the changes affect us? […]

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