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Budget 2018: What it means for you



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The final budget before Britain's exit from the EU was prepared by Federal Chancellor Philip Hammond – the country for what he says is a "new chapter "For The Economy

In the speech, which lasted well over an hour, many measures were announced that will affect the money in the pocket. Here's what it means to you.

Will I pay less income tax?

In the UK, a total of 31

million people pay income tax: 18 million men and 13 million women

About 25.6 million of these taxpayers pay income tax at the base rate

The amount you can earn each year before this basic rate income tax – called the Personal Allowance – currently stands at £ 11,850.

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In April, a year earlier than expected, this will change so that the first £ 12,500 of income will be exempt from income tax. The higher tax rate currently payable at £ 46,350 will start at £ 50,000 in April, also 12 months earlier than promised.

This will be a boost to the repayment of millions of people. Accountants Deloitte said that this would mean an annual tax savings of £ 130 for taxpayers, £ 860 for taxpayers with higher tax rates and £ 600 for taxpayers with additional tax.

This will cost the Ministry of Finance next year a cost of £ 2.8 billion

These levels will be frozen the following year, but will thereafter increase significantly in line with inflation. That is, when people earn more, they are not automatically drawn into a higher tax bracket.

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  • Key Points at a Glance

The way in which income tax is levied is different in Scotland, due to its delegated powers. At the moment. The starter rate also starts when the annual income reaches £ 11,850, but next year it will have to rise to £ 12,500.

The higher rate currently starts at £ 43,430 and is set in Scotland. All changes will be announced in the Scottish budget in December.

What about the services? Has the universal loan not proved to be controversial?

Yes, there has been quite a debate within the Conservative Party about how this will be implemented.

The universal loan is a single monthly payment for people on low incomes or with no income from work. It replaces some of the benefits and tax benefits that can be observed today, such as housing benefit and unemployment benefits

This is a highly complex welfare reform that can affect millions of people in different ways in the future – with winners and losers.

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Various transitional measures will be introduced over the next five years, but no details have yet been released

However, the Chancellor said that the employment allowances would be increased if the rollout was Universal Credit completed. The allowance is the amount someone can earn before payment of the benefit is affected.

In July of 2015, George Osborne cuts work benefits at Universal Credit.

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Is there a salary increase for anyone?

The level of National Living Wages, currently £ 7.83 per hour, will rise by more than the cost of living. For workers over the age of 25, it will rise to 8.21 pounds per hour in April.

Will these drivers like it?

Prime Minister Theresa May had already announced that the mineral oil tax will be frozen for the ninth year series.

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As announced on the weekend, local governments in England receive an additional £ 420 million to cope with a growing number of potholes. Activists say that this is not enough to solve the problem.

And for drinkers?

As with the last budget, the duty on beer, cider and spirits has been frozen, although there will be an increase on some high registers. Fortifying drinks, including some white ciders. The wine tax will rise in line with inflation.

Tobacco tax will rise further by inflation plus 2%.

What about the borrowers?

In a move welcomed by many charities, the government is extending its respite from lawsuits against those faced with repayment difficulties from six weeks to 60 days

An interest-free lending system for financially-financed companies will also become more vital to overcoming and unexpected household costs, similar to the Good Shepherd project in Australia. Next year, a study will be carried out to find out how a pilot project could work. So it could be some time before this became a mainstream option.

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Any change for the self-employed

The Treasury believes that one-third of people claim to be self-employment as a "personal service company" actually works just like workers and should have more income tax and social security contributions numbers.

Now that the regulations in the public sector have changed, it is now also in the private sector of April 2020. However, this will only be used for those working for large and medium-sized enterprises.

Activists immediately described it as a "fresh raid" for the self-employed.

Any housing aids?

First-time home buyers in England are no longer required to pay a stamp duty of up to £ 500,000, which is the same as the majority of first-time buyers in the last household. This will also be backdated for anyone who bought such a property in the last year.

There are more than 200,000 condos in the UK.

What about real banknotes and coins?

A 50 cent commemorative coin is issued to mark the withdrawal of the United Kingdom from the EU.

On the coin will be the head of the queen and the date of March 29, 2019 and on the reverse the phrase "friendship with all nations".

This is a reversal of the last budget when the Treasury Department paved the way for the withdrawal of 1p and 2p coins and possibly the £ 50 mark. This idea has since been dropped.

What we already knew

  • The gradual process of allowing people to pass ownership of their descendants free of inheritance tax will enter the third year. It will reach its destination by 2021
  • Many landlord-to-landlords are looking at the amount of tax relief they can claim on mortgage payments over the course of four years. The process began in April 2017. Eventually, they will only be able to see a change to the Rent a Room scheme at the lower tax rate and not the higher April
  • – which allows people to earn up to £ 7,500 a year tax-exempt from letting of a guest room – will be available only to those who stay in the premises for part of the rental period
  • Some changes in the way higher severance payments, company cars and employee loans are taxed will come into effect in April.

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