From April this year the rate of National Insurance will rise by 1% for both employers and employees. Many organisations have questioned the rise and believe it will put added pressure on businesses and individual lifestyles.
By having to pay more National Insurance for employees, the cost of employment rises and therefore the threat of redundancy increases. Individuals that have to pay increased National Insurance will see their wage packets reduce and over time will want the fall made up in the form of a pay rise.
If there is no pay rise the individual's lifestyle could be affected, especially in terms of saving for the future.
Tip
When thinking about saving, start early and only save what you can realistically afford. You are more likely to continue over a longer period of time if your savings are not a burden on your lifestyle.
Visit our tax tables to get a fuller picture of National Insurance and other tax changes.