How does the budget affect you

[Isseywith2witchycats]

Our circumstances both 70 so incoming to house hold 2 state pensions partner one private pension of 16000 per year so he pays tax on this, the rise in state pension means he will pay more tax on his private pension, due to redundancy and pension draw down we are mortgage free on a small 2 bed semi up north, I for one don't resent this as hopefully families struggling will be better off and while we are far from rich we are comfortable , when both of us were working income due to his job was combined salaries of net 56000 now 36000 which is why we downsized to a small house

Could you rewrite this with full stops etc? It doesn’t really make sense.

Sorry struggling to read what you've written but it answer your question...budget has luckily had no effect on us one way or the other..

The op makes perfect sense to me.

It doesn’t really affect me to be honest. I work full time on a lowish wage, rent, don’t claim any benefits, live on my own with adult son. I think it’s right that those who can afford it bear the brunt of the rises. Most people claiming child-related benefits are working, damned hard, in minimum wage jobs, whilst struggling to feed their kids. It’s quite incredible seeing high earners living in 2million quid houses in London with kids in private school complaining that it’s not fair some kids can actually afford to eat now.

But that’s where we are.

We have a house which is in band F and so will be reevaluated because of the mansion tax. I suspect it will go up to G or H (although it won't be hit by the mansion tax) So we will pay more council tax.

We have an EV so will pay the mileage tax which is bizarre when they are currently giving grants to buy EVs

We will be affected by the freezing of the tax bands since I am close the cusp of one.

DH's business runs a salary sacrifice pension scheme for its employees so the company will have a higher NI bill.

We are likely to be hit by the extra tax on savings.

We will be affected by the ISA changes.

I will have the extra tax on landlords , only got one small property and haven’t yet seen enough detail to know the extent of the extra . I don’t really mind tbh as it’ll be manageable and most people are effected some how .

Emotionally I am demoralised for this nation at the end of 2025, we have until 2029 so several more shakedown events to go, before the country is as plundered as it can be.

I am going to work on trying to regain hope, 3 and a bit years to go and the sun will shine again.

Only thing to affect me is dividend tax going up 2%

We'll be affected by the mansion tax, income tax freeze, loss of salary sacrifice on pension contributions, higher taxes on savings. But hallelujah they dumped the idea of employers NICs for self-employed partners in an LLP- everything else is insignificant compared to that.

Dividend tax up 2% and mansion tax 5k a year.

What is this?
Employers national insurance contributions for self-employed partners in a limited company? Is that right? How does that work?

employers NICs for self-employed partners in an LLP

Well, we both save more than 12k a year in ISAs, so that will have an effect from 2027. And we’ll pay more income tax from 2027 too.

The interest rate is now likely to go down, so we’ll be worse off there.

Oh - missed the dividend tax increase. That will also impact me

That income is more than manageable with no mortgage. I survive on £15K net also no mortgage.

You shouldn't have just basic survive aspirations, you should be able to thrive and not crushed for it.

The salary sacrifice limit for pensions has really pissed me off. Stupid, stupid, stupid new tax.

Otherwise EV mileage charge tax thing is new.

Nothing else massively affects me personally. I wasn't particularly inspired by her speech though and clearly I'm not a demographic that the government particularly gives a shit about, so super looking forward to the next 3 budgets.

The salary sacrifice limit for pensions has really pissed me off. Stupid, stupid, stupid new tax.

Have I understood correctly that currently we can pay in £60k/year tax free but from 2029 we can only pay in £2k/year tax free? That is totally batshit - why would anyone save anything if that's the case!

Isas, cars and pensions: How the Budget affects you - BBC News

A £2,000-a-year cap on the amount that can be put into pensions through this salary sacrifice arrangement will be in place from April 2029. More can be put in, but it will be taxed.

Starmer has apparently special legislation to protect his pension, that for every £100 he put in, the taxpayers put in something like £2/300.

She got a household income of about 40k a year and it aint enough bro.

Yeah it makes me wonder why I try so hard to employ people, create a company where people want to work, when there’s nothing in this budget but more costs for a small business, no encouragement or creating an eco system for growth. Seriously considered retiring two years ago as the company was going through a bad patch. But put in huge effort, re-vitalised the team so we’re back on track … but for why? This country isn’t interested in ensuring we grow our way to success, only in moving the chairs around and playing politics.

😂😂😂

Yep, anything above £2k per year in salary sacrifice will now be subject to NI contributions.

So you get to limit your own pension savings to fund the state pension of today. Huzzah!

*NOT a pensioner bashing comment, it just is what it is.

We are affected by the salary sacrifice into our private sector pensions. If it came into effect today, based on our current salaries and contributions, we would lose £27 a month. For us as individual taxpayers, that amount is neither here nor there, but I am concerned about how employers will react to this policy. Especially as I do not expect the state pension to still exist by the time I retire (I’m 39).

We also live in a council tax band F property so we wait and see what the impact of that is. My house is a 4 bed in the West Midlands we bought for £385K in 2015 and is probably worth about £550K today - nowhere near the mansion tax territory, but I do feel my council tax bill is already expensive at £335 a month.

We do save into ISAs but not enough to be affected by the reduction in annual allowances.

No I think it's just the salary sacrifice that's reduced to £2k tax free. After that you will lose the NI relief as will your employer. You can still get tax relief up the £60k I believe

No you've misunderstood this (it's actually poor sensationalist reporting to be fair).

You can put in £60k a year tax free.

At the moment there is a loophole with NIC contributions which has been exploited. Employers pay employers NIC contributions on an employee's gross salary. To avoid this they enter into a salary sacrifice deal with an employee where the employer effectively says "lets say your salary is reduced by the value of your pension contribution so now instead of £50k of which £5k goes into your pension lets just say its £45k and then we will also put an extra £5k into your pension. It totals the same for the employee. The employer however has saved paying NIC contributions on £5k of salary. The employer is better off.

In most cases it's a neutral position for the employee. However some more generous employers will pass on the saving by way of an extra amount put into the pension (often half of the saving they have made).

Now you can only salary sacrifice up to £2k. Anything above this would just be a normal pension contribution out of the salary.

So in most cases the only people who are disadvantaged by this are the employers. In some cases it will impact employees if they work for a company which passed on some or all of the employer NIC saving.

It is still all income tax free up to £60k.

It's not a loophole, it's designed to encourage sensible pension contributions, which benefits everyone. FFS