Tax calculator: How will the 2021 budget affect you?

Whether you’re on benefits, working, or receiving a pension, there was a lot to digest in Wednesday’s budget.

Chancellor Rishi Sunak announced major changes 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But there was also no turnaround on the £ 20-a-week top-up on Universal Credit, which was withdrawn by the UK government earlier this month.

There was also no mention of the triple lockdown, which guaranteed retirees a fixed increase in their pensions before it was removed earlier this year.

Read more: Universal credit: what the average family will lose from changes in the 2021 budget

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

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

How much tax will I pay in 2022-2023?

In March 2021, Mr. Sunak said all income tax thresholds would be frozen until 2026. Yesterday’s announcement confirmed that this would be the case, all income tax rates and thresholds. income remaining the same as in 2021-2022.

Income tax is partially devolved in Wales. Welsh ministers can vary income tax rates by 10p in each bracket, but those powers have never been used. The UK government remains responsible for all rules and other aspects of income tax such as personal allowances, thresholds etc. the economic impact of the coronavirus lasts “.

So, although this is not certain, it is likely that income tax will also remain the same in Wales for the next financial year.

But what does all of this mean for your own paycheck?

It can be difficult to determine how each individual change can affect you, which is why we’ve teamed up with accounting firm Blick Rothenberg to bring you this budget calculator.

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

What do you think of the budget? Let us know in the comments below.

Esther L. Steinbach