Frame Kennedy

Government promise to cut National Insurance confirmed

Talk to an expert

While commenting on the GDP growth and what it indicates about the economy, the Prime Minister again drew attention to National Insurance.


The article released by the Prime Minister’s Office noted that the progress in the economy has allowed them to bring down taxes, particularly the recent cuts in National Insurance.


The article went on to say: “We think it’s unfair that workers pay two taxes on their income – income tax and National Insurance – when those who earn their income from other sources only pay income tax. That’s why we want to keep cutting National Insurance until it’s gone.”


Likely part of an election strategy, but this again confirms that we can expect further cuts to National Insurance.


The lack of National Insurance to pay on dividend payments is a key reason why many company shareholders choose a blended salary/dividend approach to extract money from their company. However, cuts to National Insurance will lessen the tax advantages that dividends bring.


The cuts that have already been made mean that taxpayers in certain situations will want to review their profit extraction strategy. Future cuts will likely mean more need to do this.


If you are unsure about your profit extraction strategy please feel free to get in touch with us and we will be happy to carry out a personalised review for you.


See: https://www.gov.uk/government/news/what-does-gdp-growth-mean-for-me

July 7, 2025
Government Unveils Roadmap for Employment Rights Bill

Following publication of the Employment Rights Bill in October 2024, the government has published a comprehensive implementation roadmap. The roadmap outlines a phased timeline for one of the most significant overhauls of UK employment law in decades.

Read article
July 3, 2025
New Industrial Strategy to Slash Energy Bills and Back British Business

The UK Government has launched a major 10-year Industrial Strategy aimed at cutting business costs, creating over 1.1 million good skilled jobs, and making the UK a world leader in clean, competitive industries.

Read article