National insurance is often referred to as the stealth tax. That’s because everyone forgets about it. The headline rate of tax always refers to income tax forgetting that if you are between the ages of 16 and 65, the chances are you are paying national insurance.
The addition of national insurance to the basic rate income tax band means if you are employed you actually pay tax at 32% between £8,424 and £46,350 (2018/19 rates).
See what we mean? Stealth!
Not only that but many taxpayers end up paying more than the maximum amount they are due to pay for a year without realising it. But HMRC will not write to you and inform you of your overpayment, unfortunately you will have to write to request it.
If you are a 40% or 45% tax payer and have changed jobs during the year, have more than one employment or have both self employment and employed income then please get in touch and we can help you with any repayment you may be due.
