HARD-UP couples could get up to £2,500 under the emergency Budget coming this Friday.
The extra cash is a boost from Chancellor Kwasi Kwarteng in his effort to help those struggling with the cost of living.
1
Millions will have their taxes cut next Friday as the cost of living continues to soar.
This “mini budget” is PM Liz Truss’ plan to help hard-up families and households keep more money in their pockets.
According to the Sunday Mirror, up to two million low-income couples where one makes less than £12,570 per year could save up to £2,500 in tax.
Right now, the way it works is the lower earner should normally have an income below their personal tax-free allowance – which is currently £12,570.
And the other half of the couple must be a basic-rate taxpayer – so earning under £50,000.
People can transfer 10% of their tax-free allowance to their partner, reducing the tax they pay by up to £252 a year.
But Ms Truss wants to see the transfer of all personal tax allowances between married couples and civil partnerships where one partner earns below £12,570.
So the lower earner can transfer £1,260 of allowance and save £214 in tax after the changes, says the Sunday Mirror.
Most read in Money
The maximum tax saved between a couple will be £2,500.
But this would cost the Chancellor an extra £5.8billion – so he might wait until the full Budget later this year.
Under the mini budget, Liz Truss will also give more details about the £150 billion energy bill bailout, with businesses waiting on tenterhooks for more information about how to access the much-needed support.
She is capping energy prices so the typical family will pay no more than £2,500 for their bills over the next two years.
Ms Truss has not yet axed the National Insurance rise of 1.25%, or the planned rise in corporation tax next year, although the Sunday Mirror believes Mr Kwarteng will.
This will stop corporation tax rising from 19% to 25%, which was a flagship promise from the PM’s Tory leadership campaign to let Brits keep more of their cash.
The PM is also said to be looking at other measures to ease the cost of living crisis and turbocharge the economy.
Last week, the government announced multi-billion package to save typical Brits £1,000 by protecting them from crippling global gas costs.
Bills were set to rise to £3,500 in October and more than £6,000 next April in a terrifying prospect for most households.
However in a mammoth intervention – which could cost more than the furlough scheme – Ms Truss is now going to cap costs from October 1, with the typical family paying no more than £2,500.
Kwasi Kwarteng is also set to unveil his “Big Bang 2.0” deregulation blitz at next Friday’s mini-Budget.
Read more about the PM’s planned mini budget here.
Brits in certain areas of the UK could have taxes slashed – read more here.
