National Insurance explained: What the threshold rise means for you | Personal Finance | Finance

The income threshold for paying the tax will rise from £9,880 to £12,570, meaning a lower proportion of people’s salaries will be subject to it.

Since the April hike, employees have paid 13.25 percent in contributions on any earnings between £9,880 and £50,000, and 3.25 percent on everything over £50,000.

In March this year, Britons with an annual salary of £30,000 would have paid £204.32 per month in National Insurance contributions.

Following the rise in April their payments would have increased to £222.16 a month.

However these will drop to £192.46 from July 6 according to figures from This is Money. This equals a 5.8 percent drop since the start of the year.