What are Nationwide Insurance coverage and revenue tax and the way a lot will I pay?

Woman calculating her taxes


Image source, Getty Images

A National Insurance cut for millions of workers is expected when Chancellor Jeremy Hunt makes his Autumn Statement on Wednesday.

However, previously announced changes to National Insurance (NI) and income tax mean millions of people will pay more tax.

What is National Insurance and how could it change?

NI is the second biggest source of money for the government, and applies across the whole of the UK.

For employees, it is similar to income tax in many ways. A fixed percentage of the money you earn is deducted from wages.

You do not pay NI on the first £12,571 you earn a year. It is then charged at 12% on earnings up to £50,271, and 2% on income above that.

Self-employed people pay 9% on profits between £12,570 and £50,270, and 2% on profits above that.

NI is not paid by people over state pension age even if they are still working.

Employers also have to pay NI contributions.

At this stage, it is not totally clear how much of a reduction Mr Hunt will reveal,…