Budget 2021 tax calculator shows how much better or worse your situation will be

Chancellor of the Exchequer Rishi Sunak yesterday announced his plans for a “new economy” in his fall budget.

He hopes this will ‘uplift’ Britain as we recover from the coronavirus pandemic.

Its measures included a major change in the rate of universal credit degression, reports The Mirror.

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The declining rate charges universal credit applicants anything they earn above their base benefit level and that amount will now be lowered to 55 pence.

Previously, applicants were taxed at 63 pence a pound, which means they will now save around £ 9 per week.

An increase in the minimum wage was also announced as well as the introduction of a new tax of 1.25% on health and social care.

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It comes after the £ 20 universal credit supplement was phased out this month, as many saw their energy bills skyrocket amid the crisis.

And Sunak warned that while incomes will rise for those on minimum wage, inflation could reach 4% by the end of this year as the cost of living continues to skyrocket, and more households should feel the pressure.

This means that millions of households could see everyday items, from the cost of a Christmas turkey to water bills and the cost of clothing rising along with the cost of living.

The UK is already feeling the pressure of retail shortages and supply chain crises fueled by a shortage of truck drivers.

Meanwhile, retirees, who were hoping for a turnaround on the decision to remove the triple lock, were not mentioned in the statement.

Instead, wages will rise from £ 4 to £ 5.50 per week for people on state full pension – but concerns are growing about weather conditions sufficient to cover bills such as a nursing license. rising television and heating bills.

Elsewhere, there were also no measures to protect these from a 250% increase in energy bills – a move that will see some paying an additional £ 300 per year, on top of the increase of 139 £ – next year.

Households had hoped for relief in the form of a VAT cut or an increase in the hot house reduction – but these have been written off.

But what does all this mean for your salary and your bank balance?

How will the budget affect me?

From the accounting firm Blick Rothenberg, all you need to do is enter your contact details in the form below to find out.

Along with the slight increase in the Tapered Universal Credit, Sunak also announced that he would increase the cost of Buckfast, adding 81 pence to the iconic Scottish tonic wine, to cover the alcohol tax.

The tax will also be increased for fortified wines as well as for stronger ciders.

But Champagne will benefit from a tax cut.

Esther L. Steinbach