Tax calculator: How will the 2021 budget affect me?

The fall budget is done and dusted off – and as a result, some of us will have more money in our pockets, while others will have considerably less. Find out how it will affect you by using our 2021 tax calculator below

Rishi Sunak on Wednesday outlined his plans for a ‘new economy’ in his fall budget – as the government hopes to ‘level’ Britain after Covid.

Its latest measures include a major change in the progressive rate of universal credit and an increase in the minimum wage as part of the introduction of a new 1.25% tax on health and social care.

But that will bring little relief to the 6 million people who took universal credit £ 20 a week this month and those who saw their energy bills increase by £ 139 on October 1.

The Chancellor also warned that inflation could surpass 4% by the end of this year as the cost of living continues to soar, sending more shock waves through households.

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

It comes at a time of a retail shortage, sparked by Brexit and a supply chain crisis 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, incomes will rise from £ 4 to £ 5.50 per week for those on state full board – but is that enough to cover a combined TV and winter license bill?

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 a 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 in a silver lining, Prosecco prices are going down as the tax is streamlined for alcohol.

Beer prices will not increase next year – tax increases – however, from 2023, whiskey and vodka will increase.

Find out below how the budget affects you with our calculator

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

To find out, we have teamed up with the accounting firm Blick Rothenberg to offer you this budget calculator.

Simply fill in your details in the form below to find out.

Fall Budget Tax Calculator

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Esther L. Steinbach