Threshold swoop will DOUBLE my NI contributions

BUSINESS director Lorna Reeves is expecting to see her national insurance contributions double next year.

Mrs Reeves is among millions set to be worse off by the income tax threshold freeze.

The 38-year-old, from Rusper, West Sussex – who runs MyOhMy events, an online events company – paid £700 in NI on a salary of just over £15,000 in 2021/22.

With a forecasted income of £30,000 for this financial year, Mrs Reeves is planning to pay herself £24,000 in salary and £ ,000 in dividends. But she said the announced threshold freeze was a frustrating ‘blow’ as inflation drives her wages higher.

‘It makes it difficult because of the double squeeze of the price everything costs,’ she said.

‘I am effectively losing money and to cover my costs I have to pay myself more and end up paying more tax. I have to think about whether it is better to hold my salary as it is and keep the tax the same while swallowing the cost of living as it is.

‘Or do I pay myself more to counteract the cost of living and pay myself more in tax.’

Mrs Reeves added: ‘It is frustrating, and it is almost like you are getting hit twice.’