How will last month’s Spring Statement affect your personal income?
For anyone less familiar, the Spring Statement is one of two annual ‘mini-budgets’ which the HM Treasury presents to Parliament. The second of which is the Autumn Budget. The latter is due to have a greater focus on tax this year. However, there are a number of points for you to be aware of now.
Please note: while we usually try to avoid sources that ask you to sign in, today’s article contains several of these – specifically selected for their handy insights. If you’d rather not access the links, you may prefer to look at these ‘proposed changes at a glance‘.
Introducing the Spring Statement 2019:
The statement covers an array of topics, from the public purse to technological changes, economic growth plans, education and investment. It also comprises aspects of (potentially more) personal interest, including those pertaining to house prices, loan charges, tax and more.
Of course, there’s little more personally relevant than your payslip. The below podcast reference features greater detail regarding this. Yet, if you want to cut straight to the chase, The Telegraph has an online calculator which will help you ascertain how much your payslip will differ as of this month (April 2019).
As noted on the site, it’s a prediction tool which “does not take your pension contributions, child tax credits or student loan payments into account”. You’ll need to sign in to use it. They offer a free registration which entitles you to a limited number of articles.
Please note: if you struggle to interpret your payslip and tax code, we have an article that should really help!
A handy podcast…
We were interested to catch the recent Money Box podcast, which invited experts to comment on the impact the statement will have on your household finances. The whole episode is only 28:44 minutes long. We’ve also tracked down some key timeslots that may be of particular interest to you…
- 12:32: introducing the main income tax changes, the fact that we will all pay less tax in England, and how personal allowance and higher rate thresholds are increasing.
- 13:38: an extra note for Basic Rate taxpayers, also regarding personal allowance.
- 14:30: discussing how higher rate taxpayers will additionally pay less tax, yet more National Insurance.
- 15:22: mentioning the loss of child benefits for higher rate taxpayers.
- 16:00: the fact benefits are frozen for those that don’t pay tax, with no change in universal credit. Also discussing nil rate bands.
- 16:29: a reminder for everyone to register for child benefits even if they earn over £50,000, as the credits contribute towards the state pension.
- 18:36: stating ‘big changes’ for the 10 million people in auto enrolment pensions, with a ‘big rise in contributions’.
- 20:05: questioning whether more people will opt out in light of the above. Also, whether people will actually notice the change, as there are so many changes happening at once (20:24).
- 20:42: a point of interest for everyone on minimum wage.
- 22:00: are people making sufficient pension contributions? How some may not be able to retire due to inadequate pensions arrangements. With a special message at 22:33.
You can scroll straight to the above timeslots, or listen to the episode in its entirety, via the BBC Sounds website. You’ll need to sign in (or register for free) to do so.
Don’t forget to read our article on understanding your payslip and tax code if you need any assistance with this.