Today’s Budget included some interesting announcements, but with all the details being discussed left right and center, it can be difficult to work out whether you’ll win or lose.
Firstly, let’s summarise some of the budget headlines:
- 50% tax rate for high earners – from next year, there will be a new tax rate of 50% for those earning £150,000 or more.
- ISA allowance raised to £10,200 – for the over 50s the ISA allowance will rise to £10,200 from 6th October 2009, of which up to £5,100 can be held in cash. The rest of us will have to wait until the start of the next tax year (6th April 2010) for the increased allowance.
- Car scrappage scheme introduced – owners of cars over 10 years old will be able to scrap them when buying a new car and will get a £2,000 discount on their new car. You won’t be able to buy a anger just for the discount though, you’ll have to have owned the car for more than a year to qualify, and the scheme is due to run until March 2010. I wonder whether car dealers will sneak a few extra quid onto their prices, knowing that it could be swallowed up by the discount?
- Alcohol and tobacco up 2% – more tax put onto booze and fags.
- Fuel up 2p in September – petrol prices will rise later in the year.
- Statutory redundancy pay increased - up from £350 to £380 a week.
- Guaranteed jobs or training for those under 25 -Â From January all under-25s out of work for a year will be offered a job or training.
- Stamp duty holiday extended – homes under £175,000 will be exempt from stamp duty until the end of the year.
If you want an idea of how all of today’ announcements will affect you, try out the BBC’s budget calculator. Whilst it might not be 100% accurate, it should give you an idea of whether you’re a budget winner or loser. If you’re hit by the new 50% rate of tax, my heart bleeds for you!
I’ve tried it out and it reckons I’ll be £700 per year better off, which sounds good. Thanks Darling!
How will you be affected? Let us know in the comments below.
photo credit: Ben Sutherland
Thanks for the summary lots of hype about the budget, cool link to the calculator at least I will be better off.
I think two years on everyone is feeling bit like a loser. Thing’s aren’t getting any better. 20% VAT isn’t helping much either. I’m sure Cameron is losing more than a few nights sleep over the budget and general economy.
I say carry on putting the tax on alcohol and tobacco that should help. With all the problems in Europe I wonder what the next budget is going to look like. Last time I heard unemployment was the highest its been in over a decade.