Today, you should see more in your bank account from your salary than in March. This is due to the National Insurance cut for employees from 10% to 8%, which was announced with much fanfare.

By way of example, if you are an employee on the median salary of £35,000 a year you will see an extra £37 a month. On £25,000 you will see an extra £21 a month. If you are lucky enough to earn £50,270 or more, you will see an extra £63 a month in your pocket.

Whilst this is seemingly good news, you may not have noticed your Personal Allowance has not changed from £12,570 since April 2022 . Since this time, inflation has been around 14.5%, so your Personal Allowance should be around £14,390. This lack of uprating the Personal Allowance with inflation is costing you around £30 monthly.

If you are a Higher Rate taxpayer, your Basic Rate Band (the band at which you pay 20% income tax) should now be around £43,158, not still stuck at £37,700*. Had the Basic Rate Band increased with inflation, you would be better off to the tune of around £91 a month.

Not moving allowances with inflation is a deliberate government policy, known as ‘fiscal drag’, and is generally more palatable to taxpayers than outright tax increases.

“The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.” Jean-Baptiste Colbert, 1665