Last week Philip Hammond delivered the much anticipated Autumn budget, laying out the Government’s financial plans.
The speech covers all areas of the country’s finances and was over an hour long so we’ve picked our top 3 takeaways that we feel are most relevant to our clients.
Income Tax Changes
Coming in at number 1 and affecting almost everyone are the changes to income tax. The personal allowance will increase from £11,850 to £12,500 and the higher rate tax threshold will go from £46,350 to £50,000.
So what impact will those changes actually have? Basic rate taxpayers will have an extra £130 in their bank account. Those in the higher rate bracket will have another £500 (it would be more except for the changes to national insurance). Additional rate taxpayers will be about £600 better off. For those on a tight budget these are some welcome changes!
We’ll be updating all of our Hatch plans to reflect the changes when they come into effect in April next year.
At number 2 is the confirmation of the 'millennial' railcard that will be available by the end of 2018. Like most railcards it gives passengers a third off of their fares, making a significant dent in expensive journeys. Sadly you can’t use it to save on your commute if you travel at peak time.
It’s also a significant saving for those travelling off peak in London as you can link it with your Oyster card as well as those with family or significant others in other parts of the UK.
The government announced an additional £5,000,000 in funding to the pension dashboard project. The government intends to provide the data allowing individuals to view their state pension entitlement, alongside any private and workplace pensions, giving them a full picture of their retirement prospects.
This will greatly benefit the large number who have lost track of previous work pensions and have struggled to track them down. It will help the younger generations keep track as they tend to move jobs more often than previous generations.
These are the top things that stood out for us. If you have any questions, comments or feel there’s something else we should include then please let us know!