NATIONAL insurance changes are coming in today which mean you can earn more before paying the cash.
It's a boost to incomes for many, but not everyone stands to benefit from the tax shake-up.
Millions of workers could actually be worse off overall from the National Insurance change, depending on their circumstances.
Those on the lowest salaries, and higher earners are among those who will miss out.
And with inflation rocketing many will still see less cash in their accounts from the change.
That's because of rising prices, which means more of your cash goes on essentials like food, fuel and bills.
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Here we explain what's changing and who could miss out on the pay rise from the rise in National Insurance.
How is National Insurance changing?
From today (July 6) the threshold at which you start paying National Insurance will increase.
It was £9,500 a year but has increased to £12,570, bringing it into line with the threshold for paying income tax.
The exact amount of the cash boost depends on how much you earn and can be affected by other things, like bonus payments or salary deductions.
The increase to the National Insurance threshold comes into effect from July 6 and you should see it on your next payslip after this date.
You can use a handy online tool on the government's website to get an estimate of your tax savings – you just have to enter your annual salary.
But this will only take into account today's tax-free threshold increase, and not a previous hike to NI rates in April, which saw millions pay MORE.
The social care levy added 1.25 percentage points to National Insurance rates.
When you do start paying NICs it's now at a rate of 13.25% on earnings over the new threshold (£12,570) – previously it was 2%.
There's also now a higher rate of NICs of 13.25% on earnings over £50,268.
Lowest earners
If you earn below £9,500 a year then the rise won't make a difference to your pay.
You already earn less than the old threshold which means you don't pay any NICs anyway.
The good news is that if you start earning over this amount, for instance you take on more hours, you won't pay more until you earn over the new threshold of £12,570.
That's and extra £3,000 you can earn tax-free.
Highest earners
Anyone earning more than around £31,000 will not be better off overall this year.
Although they will see a change to NICs after today's increase, they started paying MORE NICs back in April.
Taking both changes into account it means it's only people earning less than £31,000 who are better off from both.
For instance those earning £40,000 a year are now paying £42 a year more.
And those on a £67,000 salary are paying £382 a year more, calculations for The Sun show.
The more you earn, the less you gain from the National Insurance changes because the tax hike outweighs the raised threshold.
Anyone out of work
If you're not in work, you won't get today's pay rise, for instance if you're looking for work and are on benefits.
That's because you only start paying the tax when you earn over a certain amount.
But once you do start work and paying NIC, you'll be able to earn that extra £3,000 tax free too.
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