THE government has announced a raft of changes which could affect your finances.
Chancellor Rishi Sunak revealed all in his Budget with plans for spending and taxes.
2
Low-income earners were one of the big winners and so was anyone who enjoys a tipple after Mr Sunak announced a shake-up of alcohol taxes.
But there is also a rise to 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 work out how much tax you’ll be paying and what your take-home pay will be.
How to use the tax calculator
You can find The Sun’s tax calculator here.
You’ll be asked to fill in some personal details like your age and if your married or have kids.
Fill in your annual salary and any other income you have, for example from a pension or investments, and you can get started understanding the difference you’ll pay in tax this year and next.
Don’t forget that the tax year runs mid-year and the new one starts in April 2022.
The government previously announced that there will be no income tax rise next year and the current rates will be frozen until 2026.
? Read our Budget 2021 live blog for live updates
National Insurance will rise from next April though, so you’re likely to be paying more.
Use the tax calculator and you’ll be able to see by how much, as the amount you pay depends on how much you earn.
The Sun’s tax calculator will also show you how much more tax you’ll be paying for your car, alcohol and cigarettes
Simply fill in how much you drink smoke or drive and you’ll see the annual increase.
Mr Sunak announced a shake-up of alcohol duties – but that won’t come in until 2023.
But cigarettes have already gone up in price as tax changes on tobacco come in on Budget day itself.
It means that you’ll be paying as much has 88p more for a packet of smokes.
Using the tax calculator, you can work out how much more this will add up to each year.
Car tax will rise, but in a win for The Sun, the government has frozen fuel duty for another year.
Child Benefit rates could still rise next year – but there was no announcement in the Budget.
Changes to benefit rates are usually announced separately by the government in November.
It’s worth noting that the information entered into the Blick Rothenberg tax calculator may be used to produce aggregated 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 how the changes could impact your situation.
How does the Budget affect me?
In addition to taxes, there were several announcements by Mr Sunak that could affect your finances.
Anyone on the minimum wage will get a boost to pay as it’s being hiked to £9.50 per hour.
The public sector pay freeze will also come to an end, meaning that salaries of 2.6 million workers will rise, including teachers, civil servants and police officers.
From December nearly 2million working Brits on Universal Credit will be better off.
A change to the benefit’s taper rate and work allowance will see people keep more of what they earn.
It’s a move welcomed by those affected by the harsh rules and a huge win for The Sun’s Make Universal Credit Work campaign.
Those on a low income will also get a boost to their pension as the government plans to close a loophole that means many miss out on extra money going into their pension.
You can check out the winners and losers from the Budget.
We spoke to pub workers and parents to see how they’ll be better off after the Budget – and you might be too.
2
Rishi Sunak defends Budget plans for cutting tax on booze as your favourite tipple becomes cheaper
We pay for your stories!
Do you have a story for The Sun Money team?
Email us at [email protected]
