Budget 2016 How it affects you

Budget 2016 How it affects you by Michael Cheary No idea about the Budget? We can help with that…Big changes have been announced by the government as part of the latest Budget. These cover a wide range of issues, with everything from income tax and savings through to sugar and soft drinks, being accounted for.Here are some of the key points you need to know, and a few details on how you could directly be affected by the Budget 2016:Changes to your pay-packetAs a result of the Budget, you’ll begin to see more money in your bank account.The personal allowance (the level at which you start paying income tax) will rise to £11,500 in April 2017. If you earn less than this you will pay no tax at all.Almost everyone will get the same Personal Allowance of £11,000 for the year 2016-17, but you may get more (if you were born before 6 April 1938) or less (if your income is over £100,000).Higher earners will also benefit, with the 40% threshold rising to £45,000 in April next year.What if you’re self-employ ed?From April 2018, anyone who is self-employed will no longer pay Class 2 National Insurance Contributions (NICs).Class 4 NICs will be reformed from April 2018 so self-employed people are able to build entitlement to the State Pension and other benefits.If you drive to workIt’s good and bad news for drivers.Fuel duty has been frozen for the sixth year in a row and, if you happen to travel between Wales and England, the Severn Bridge toll will be halved.However, your car insurance may go up due to a 0.5% increase in Insurance Premium Tax. This rise will also affect your other insurance policies such as home and pets.Going out after workEvenings out will also generally stay at the same price.Tax on beer, most ciders and spirits will not be going up, while strong ciders and wine will go up by inflation.Smokers will pay more, with tobacco going up by 2% above inflation and hand rolling tobacco increasing by an additional 5%.What about your sugar fix?One of the biggest stories of this Budget was the sugar tax on soft drinks.From 2018, your favourite fizzy beverage might cost more, based on the amount of sugar it contains.Money raised from this will be used to fund sport in primary schools.Spending your hard earned moneyPrices might increase if you shop online.A loophole, which allowed companies selling online to avoid VAT, will be closed.However, this will vary depending on where you shop, and the companies you buy from may or may not be affected.Supplementing your incomeIf you like to make a bit of extra cash by selling online, you will be able to earn £1,000 before paying any tax from April 2017.There will also be another £1,000 allowance if you temporarily rent out your home, spare room or other part of your property.What if you want to start saving?There were a few big announcements when it comes to helping people save their money.For current ISA users the limit will increase to £20,000 from April 2017.At the same time, a new Lifetime ISA will also be int roduced for savers under between 18 and 40. For every £4 you save before turning 50, you will get a £1 bonus from the government. If you already have a Help to Buy ISA you will be able to roll it into a new Lifetime ISA.If you are on Universal or Working Tax Credit, you will also be able to take advantage of the Help to Save scheme, where you receive a 50% bonus on anything you save up to £50 a month after two years.* Please note, the information outlined above is intended for general guidance purposes only. This article was first written in March 2016.For more detailed information about the Budget 2016, visit gov.uk now.  Ready to find your perfect position? Have a look at all of our current vacancies now. Find a job What Where Search JobsSign up for more Career AdviceSign up for moreCareer Advice Please enter a valid email addressmessage hereBy clicking Submit you agree to the terms and conditions applicable to our service and acknowledge that your personal data will be u sed in accordance with our privacy policy and you will receive emails and communications about jobs and career related topics. Salaries