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

I suspect you are joking. Sadly many will resort to that. I haven't watched his whole interview, I think I will. There may be nonsense in there amongst the clips I agree with, I will go and see.

https://youtube.com/shorts/m_Q6LuCvp-o?si=x9rDCYhFafr7th2m

How do we know they will be re-valuing F and up? Is that in any official releases anywhere?

Properties in F G and H will be revalued to see whether they fall into the mansion tax category. In the meantime that data will then affect their council tax band.

I'll get the child element for my 4th child now (my oldest is no longer a child)

https://www.thetimes.com/business/companies-markets/article/mishcon-de-reya-james-libson-rachel-reeves-3m73xtpgl

I've tried to share an article explaining it but my posts have been hidden for some reason. This one is less clear but maybe MN will let it appear. In short, it's been widely reported that one option on the table was to charge LLPs the equivalent of employers NICs on the drawings of their (self-employed) partners. This would mean additional costs per partner of tens of thousands to hundreds of thousands of pounds for many.

https://www.lawgazette.co.uk/news/budget-25-chancery-lane-welcomes-llp-tax-reprieve/5125239.article

Is this speculation or from a gov source?

My hidden posts were a link to the Tax Policy Associates article on the proposal which explains it very well, if you are interested, and includes a calculator.

It’s on the bbc website in the budget summary

Doesn’t really affect us. Both middle earners, no benefits so don’t gain from that but meh- at least we won’t pay more than the 40% tax we already do. Property definitely unaffected by the ‘mansion tax’. Drive an EV, no idea why they’re charging more for an EV per mile than a hybrid, that was the only confusing thing but can’t get het up about it.

Dying to know when the free breakfast clubs will hit, we pay £7 per day for that currently.

Negatively on all fronts.
I will never vote Labour again and pray to God that by 2029 someone else gets in and scraps the lot!

The OP doesn’t say that at all!

The salary sacrifice would impact me massively, but it’s not coming in until 2029. The OBR have stated they cannot predict how behaviour will change by then as a result, and firms may find a work around, such as ‘actually’ reducing wages in exchange for employer contributions, so I’m not worrying about that now. I will certainly up my contributions over the next 3.5yrs and will probably pay my bonuses into my pension for the next 3yrs which I don’t currently do. Just to max it out whilst it’s still in its current format.

The 2% savings and dividend tax impacts me, as well as the reduction in cash ISA allowance. I’ll max out next years £20k, then will probably pay some lump sums off the mortgage rather than sit on cash. The tax thresholds are annoying but they’ve not risen since 2021 so I’ve forgotten what they feel like. I’m well through the 45% threshold so the impact is minimal really.

Our house isn’t worth anyway near £2m and we don’t have electric cars so no change there. It’s ironic really that I’m a high earner, but other than the salary sacrifice which is years away, it’s not actually had much of an impact. We do have 2 DC in private school though so we had our ‘hit’ on the VAT on those.

This is correct. NI will be charged on the sacrificed pay above £2000pa.

A few different ways ..

im a TA , so in theory will benefit from the NMW increase, but in reality what that will look like in school is the next time a member of staff leaves , they won’t be replaced to pay for the rest of the wages .

while I don’t think it affects my husband this year, the freeze on the higher tax rates may well affect my husband next year (as he will probably have enough overtime to nudge into the next bracket) and the same with his pension.

They lied, in the manifesto, they delivered the opposite.

I don't think many realised this would happen. Some saw it coming and we warned people.

My adult child voted for them also and pays more attention to my advice now, where as they often dismissed me previously, a hard lesson, none of us wanted learned.

@ThePolarEspressoi appreciate your comment but alas now at 41 i feel that ship has sailed - will always have some sadness about that, meanwhile those with 6 kids and no jobs are seeing their benefits increase 😡

OP make perfect sense to me too!

Doesn't really affect me either - even having a motability vehicle in the house as my ds is a wheelchair user it’s a Skoda 🤣

Lone parent with a soul destroying corporate job with a total take home of about 100k. I’ll lose out through - salary sacrifice pension as I currently put 19% of earnings into pension, ISA cash allowance and EV mileage. I’ll be reducing my hours if possible to keep below 100k and losing my personal allowance.

chancellor said the over-65s will still be able to save up to £20,000 in cash.

How many over 65s or pensioners have a disposable income where they can save £20K in cash every year? How bizarre! Or is it just for MPs and their gold plated pensions?

Salary sacrifice rules affect me - I use pension contributions to stay under tax thresholds (£100k cliff) and use salary sacrifice to do this as it’s offered as standard by my employer workplace pension. Employer puts both my NI saving and theirs into my pension as a result. The £2k limit is teeeeeeeeny. It’ll cost my pension each year in lost contributions and if you extrapolate that over multiple years, plus add loss of compounding it would have if in the pension pot then it’s actually a big number it’ll cost me over my working life. All at a time when all sources says pension savings in uk are far too low and gov talks of needing people to prioritise pension savings. It’s ridiculous.

obviously, frozen tax bands will affect me too.

i use ISA allowance annually, but do have S&S ISA and comfortable with putting a proportion into investments but that’s because I don’t need to use the money quickly. If you’re investing then you really need to be thinking it’s locked in for 5yr plus timeframe.

As a fellow child free singleton, I whole-heartedly agree!

Salary sacrifice not coming in until 2029?

Drive an EV due to being sucked in by incentives but will change it before pay per mile comes in.

I’m annoyed by the EV tax. Petrol/ diesel are so noisy! I can’t wait for electric motorbikes to be a thing! 🎧