Martin Lewis provides an urgent National Insurance update: ‘You may be paying too much tax.’

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‘You may be paying too much tax,’ says Martin Lewis, who provides an urgent update on National Insurance.

MARTIN LEWIS has identified a simple error that may result in employees paying too much tax on top of the April National Insurance increase.

Mr Lewis stated on ITV’s Martin Lewis Money Show last night that millions of employees may be affected by the new tax code.

Employee and self-employed national insurance premiums will rise temporarily, followed by a new pensioner levy.

The National Insurance rate is set to rise to help cover the increased health and social care costs incurred as a result of the pandemic.

The 1.25 percent increase will bring Class A contributions to a total of 13.25 percent, resulting in an extra £255 in taxes for the average worker for the year.

According to government guidance, this increase should be temporary, with NI rates returning to 2021 levels in April 2023.

Workers over the state pension age, on the other hand, who would not have otherwise had to pay NI contributions, will be responsible for the missing 1.25 percent.

This news came as a result of the beginning of energy supplier failures and the current cost-of-living crisis sweeping the UK.

The Martin Lewis Money Show has been inundated with questions about the recent energy price increases, with many people asking how they can make ends meet.

Mr Lewis expressed his dissatisfaction with his inability to provide clear advice to his viewers on these issues during his show.

“I can’t do anything about that one,” a disheartened Mr Lewis exclaimed as he continued to explain the NI increase.

“Do check your tax code if you’re an employee,” he said.

“Millions of people are mistaken, and you might be paying too much tax as a result.”

Depending on one’s income and tax code, the amount of National Insurance contributions paid with each paycheck varies significantly.

As a result, millions of people may be overpaying NI because they have the wrong tax code, but few people know what tax code they are in.

The current categories are as follows:

Those who:

People in categories A, H, and M who earn between £797.01 and £4,189 per month pay 12% National Insurance.

Individuals in category B who earn the same amount will only pay 5.85.

“News from the Brinkwire.”

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