Budget Tax Calculator – How Rishi Sunak’s Changes Will Affect You
THE government has announced a series of changes that could affect your finances.
Chancellor Rishi Sunak revealed everything in his budget with spending and tax plans.
Low-income people were one of the big winners, as were anyone who has a drink after Sunak announced a tax shake-up on alcohol.
But there’s also an increase in national insurance on the horizon next year – so how do the changes add up for you?
The Sun’s Budget Tax Calculator, created with tax advisors Blick Rothenberg, can help you determine how much tax you’ll pay and what your take-home pay will be.
How to use the tax calculator
You can find The Sun’s tax calculator here.
You will be asked to fill in some personal details like your age and whether you are married or have children.
Fill in your annual salary and any other income you have, such as pensions or investments, and you can begin to understand the difference you will be paying in taxes this year and next.
Remember that the tax year is in the middle of the year and the new one begins in April 2022.
The government previously announced that there would be no income tax hike next year and that current rates would be frozen until 2026.
ðµ Read our live blog on Budget 2021 for live updates
National insurance will increase from next April, however, so you will likely pay more.
Use the tax calculator and you will be able to see by how much because the amount you pay depends on what you earn.
The Sun’s tax calculator will also show you how much more tax you’ll have to pay on your car, alcohol, and cigarettes.
Just indicate how much you smoke or drive and you will see the annual increase.
Mr Sunak has announced a tax shake-up on alcohol, but that won’t happen until 2023.
But the price of cigarettes has already risen as tobacco tax changes take effect on Budget Day itself.
This means that you will pay as much as 88p more for a pack of cigarettes.
Using the tax calculator, you can determine how much this will represent each year.
The car tax will rise, but in a victory for The Sun, the government froze fuel taxes for another year.
Child benefit rates could increase further next year – but no announcement was made in the budget.
Changes to benefit rates are usually announced separately by the government in November.
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.
How does the budget affect me?
In addition to taxes, there have been several announcements from Mr. Sunak that could affect your finances.
Anyone on the minimum wage will get a boost to pay as it is raised to Â£ 9.50 per hour.
The public sector wage freeze will also end, meaning the wages of 2.6 million workers will rise, including teachers, civil servants and police.
As of December, nearly 2 million Britons working on Universal Credit will be better off.
A change in the progressive rate of the work benefit and allowance will allow people to keep more of what they earn.
It’s a move hailed by those affected by the strict rules and a huge win for The Sun’s Make Universal Credit Work campaign.
Low-income people will also benefit from an increase in their pensions, as the government plans to close a loophole that means many run out of extra money for their pensions.
You can view the budget winners and losers.
We spoke to pub workers and parents to see how they would fare better after budget – and you could be too.
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