Budget 2021 tax calculator – find out how better or worse you will be
THE Â£ 65bn mega budget was unveiled yesterday in an attempt to help Britons weather the Covid crisis.
With a range of supports introduced, we’re here to show you how they’ll help you.
Some of the things announced in the budget include VAT help, time off, stamp duty reductions, and additional help for home buyers.
However, the budget will not help everyone.
Chancellor Rishi Sunak has announced a freeze on income tax thresholds, which means UK workers cannot benefit from planned increases in the amount that can be earned tax-free.
The tax-exempt personal allowance – the amount you can earn before paying taxes – will increase as planned from April 2021 but then remain at that rate until April 2026.
For base rate taxpayers the threshold will be maintained at Â£ 12,570 and Â£ 50,270 for higher rate taxpayers
Who benefits from the Budget?
The biggest winners in the budget announcement are self-employed workers hit by the Covid crisis, as Mr Sunak revealed details of a fourth and fifth self-employed grant.
It will be a welcome relief for an additional 600,000 self-employed workers who have been excluded from government support – but there are still nearly 2.5 million missing.
Another victory for workers in the UK, the government will extend the leave until the end of September.
This means that 80% of people’s salaries will continue to be paid for months, helping businesses get back on their feet.
But employers will have to contribute from July, when they will have to contribute 10% of the cost.
This figure will rise to 20% in August and September when the economy reopens.
Another good news to come from the announcement was that the universal credit increase of Â£ 20 per person will be extended for another six months and ‘well beyond’ the end of the nationwide lockdown in its budget.
The extended boost is believed to help prevent thousands of families from taking on more debt.
So with all of this, how does the budget affect you?
To find out, we’ve teamed up with accounting firm Blick Rothenberg to bring you this easy-to-use budget calculator, so you can see how these changes will affect you this year.
How to use the budget calculator:
You can find the budget calculator here. Using the calculator is super easy.
There are 4 slides at the top, for you to enter your personal information for the calculator to work.
You will be asked to enter your age, marital status, number of children you have attended full-time schooling and whether you are applying for family allowances, your annual salary, your weekly cigarette and alcohol expenses, and details. on your car if you have one.
Once you have entered all of that, the calculator will tell you how much better you will be or not due to the budget.
It will calculate how much better you will feel financially for the year.
It should be noted that information entered into the Blick Rothenberg tax calculator may be used to produce an aggregate trend analysis, but will not be used to identify individuals or their personal circumstances.
The calculator is designed only to give you an indication of the impact the changes might have on your situation.
Discover the key points of the 2021 budget announcement here.
If you’re still confused about the holiday, here’s what you need to know about how it works.
We break down the tax changes for you.