Millions of workers set for £330 pay boost tomorrow thanks to major tax cut

MILLIONS of workers will be able to keep more of their hard-earned cash thanks to a major tax cut that comes into force tomorrow.

The average worker is set to receive a £330 pay boost thanks to a cut in the rate of National Insurance contributions.

A 1.25 percentage point increase to National Insurance will be scrapped from Sunday.

The rise in National Insurance contributions (NICs) took effect in April this year but will be reversed tomorrow (November 6) putting more money back in people's pockets.

Around 28 million workers across the UK are set to keep an extra £330 a year on average.

But the exact amount better of you'll be will depend on how much you earn.

Lower earners, on less than £12,570 a year, won't benefit from the change.

That's because you don't pay any NICs under this amount which is also your tax-free personal allowance for income tax.

National Insurance is paid by employees over the age of 16 and earning above £242 a week.

It's also paid by self-employed Brits making a profit of £6,725 or more a year.

The change to the rate is also set to benefit 920,000 businesses, which will keep almost £10,000 a year on average.

Moat workers will see the tax cut from this month's pay packet onwards, but some will see it backdated in December or January.

Scrapping the National Insurance hike is one of only a few policies that survived former Prime Minister Liz Truss' mini-Budget

Newly installed Chancellor Jeremy Hunt announced several U-turns on the tax cuts announced by the previous Chancellor Kwasi Kwarteng, which had shocked markets as they were unfunded.