What the Budget means for your taxes, explained with simple tables

Stefanie Tremain
Philip Hammond holds the red case as he departs 11 Downing Street to deliver his budget: Getty Images

Most taxpayers should find themselves with a little extra in their pockets, following a Budget that announced increases to the personal allowance and the basic rate band but no increases to income tax rates or National Insurance.

The personal allowance increase of £350 up to £11,850 from April 2018 is worth an extra £70 per tax year to basic rate taxpayers. Combined with the increase in National Insurance thresholds, many taxpayers earning up to £45,000 should take home an extra £8 per month. Taking into account the increase in the basic rate threshold (which is the amount at which individuals start to pay tax at 40 per cent) from £45,000 to £46,350, higher rate taxpayers (those earning up to £100,000) should find themselves £20 better off per month; an extra £240 over the course of 2018/19.

For pensioners who do not pay National Insurance the net increase will be slightly lower for basic rate tax payers, who will still be £8 per month better off. Pensioners who pay tax at higher rates will be £28 per month better off (£336 over the course of the tax year).

It also pays for basic rate taxpayers to be married as an married couple with one basic rate earner and one child will take home a whole £1 more each month than an unmarried couple in the same position. Married pensioners look to be the biggest winners, with those earning over £150,000 taking home an extra £57 per month – possibly not the intended effect of a Budget billed as being for the ‘next generation.’

So whilst everyone appears to be at least slightly better off, those taxpayers relying on investment income to fund their living costs may remember that the last Budget announced a reduction in the dividend allowance from £5,000 to £2,000, from April 2018.


Married (or civil partnership) couple, two earners, two children

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 21,206 21,206 -
£15,000 23,936 23,967 +3
£20,000 26,349 26,457 +9
£25,000 28,212 28,340 +11
£30,000 29,895 30,035 +12
£35,000 32,148 32,314 +14
£40,000 35,548 35,751 +17
£45,000 38,948 39,151 +17
£50,000 42,348 42,551 +17
£60,000 49,148 49,351 +17
£70,000 55,781 56,119 +28
£80,000 61,319 61,656 +28
£90,000 66,259 66,597 +28
£100,000 72,393 72,730 +28
£125,000 87,726 88,063 +28
£150,000 102,559 103,032 +39
£175,000 113,726 114,198 +39


Married (or civil partner) couple, one earner, two children

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 20,986 21,017 +3
£15,000 22,866 22,974 +9
£20,000 24,216 24,324 +9
£25,000 25,566 25,674 +9
£30,000 26,916 27,024 +9
£35,000 29,098 29,207 +9
£40,000 32,498 32,607 +9
£45,000 35,668 35,770 +9
£50,000 38,568 38,805 +20
£60,000 42,580 42,816 +20
£70,000 48,380 48,616 +20
£80,000 54,180 54,416 +20
£90,000 59,980 60,216 +20
£100,000 65,780 66,016 +20
£125,000 75,680 75,776 +8
£150,000 90,180 90,276 +8
£175,000 103,430 103,526 +8


Married pensioners (both born after 5 April 1935)

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 10,000 10,000 -
£15,000 15,000 15,000 -
£20,000 19,863 19,940 +6
£25,000 24,197 24,274 +6
£30,000 28,530 28,607 +6
£35,000 32,600 32,703 +9
£40,000 36,600 36,740 +12
£45,000 40,600 40,740 +12
£50,000 44,600 44,740 +12
£60,000 52,600 52,740 +12
£70,000 60,267 60,677 +34
£80,000 66,933 67,343 +34
£90,000 73,600 74,010 +34
£100,000 80,267 80,677 +34
£125,000 96,933 97,343 +34
£150,000 112,600 113,280 +57
£175,000 124,267 124,947 +57


Single pensioner

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 10,000 10,000 -
£15,000 14,300 14,370 +6
£20,000 18,300 18,370 +6
£25,000 22,300 22,370 +6
£30,000 26,300 26,370 +6
£35,000 30,300 30,370 +6
£40,000 34,300 34,370 +6
£45,000 38,300 38,370 +6
£50,000 41,300 41,640 +28
£60,000 47,300 47,640 +28
£70,000 53,300 53,640 +28
£80,000 59,300 59,640 +28
£90,000 65,300 65,640 +28
£100,000 71,300 71,640 +28
£125,000 81,700 81,900 +17
£150,000 96,700 96,900 +17
£175,000 110,450 110,650 +17


Single person, no children

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 11,082 11,113 +3
£15,000 13,480 13,581 +8
£20,000 16,880 16,981 +8
£25,000 20,280 20,381 +8
£30,000 23,680 23,781 +8
£35,000 27,080 27,181 +8
£40,000 30,480 30,581 +8
£45,000 33,880 33,981 +8
£50,000 36,780 37,016 +20
£60,000 42,580 42,816 +20
£70,000 48,380 48,616 +20
£80,000 54,180 54,416 +20
£90,000 59,980 60,216 +20
£100,000 65,780 66,016 +20
£125,000 75,680 75,776 +8
£150,000 90,180 90,276 +8
£175,000 103,430 103,526 +8


Single person, one child

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 17,493 17,524 +3
£15,000 19,143 19,244 +8
£20,000 20,493 20,594 +8
£25,000 21,843 21,944 +8
£30,000 24,756 24,857 +8
£35,000 28,156 28,257 +8
£40,000 31,556 31,657 +8
£45,000 34,956 35,057 +8
£50,000 37,856 38,092 +20
£60,000 42,580 42,816 +20
£70,000 48,380 48,616 +20
£80,000 54,180 54,416 +20
£90,000 59,980 60,216 +20
£100,000 65,780 66,016 +20
£125,000 75,680 75,776 +8
£150,000 90,180 90,276 +8
£175,000 103,430 103,526 +8


Single person, self-employed

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 10,989 11,007 +2
£15,000 13,537 13,625 +7
£20,000 17,087 17,175 +7
£25,000 20,637 20,725 +7
£30,000 24,187 24,275 +7
£35,000 27,737 27,825 +7
£40,000 31,287 31,375 +7
£45,000 34,837 34,925 +7
£50,000 37,737 38,000 +22
£60,000 43,537 43,800 +22
£70,000 49,337 49,600 +22
£80,000 55,137 55,400 +22
£90,000 60,937 61,200 +22
£100,000 66,737 67,000 +22
£125,000 76,637 76,760 +10
£150,000 91,137 91,260 +10
£175,000 104,387 104,510 +10


Unmarried couple, both earning

Salary

Net Income 2017/2018 Net Income 2018/2019 Monthly gain/loss 2018/2019
£10,000 11,302 11,302 -
£15,000 14,780 14,811 +3
£20,000 19,013 19,114 +8
£25,000 22,926 23,047 +10
£30,000 26,659 26,792 +11
£35,000 30,359 30,525 +14
£40,000 33,759 33,962 +17
£45,000 37,159 37,362 +17
£50,000 40,559 40,762 +17
£60,000 47,359 47,562 +17
£70,000 53,993 54,330 +28
£80,000 60,126 60,463 +28
£90,000 66,259 66,597 +28
£100,000 72,393 72,730 +28
£125,000 87,726 88,063 +28
£150,000 102,559 103,032 +39
£175,000 113,726 114,198 +39


Tables compiled by Paul Haywood-Schiefer ATT at Blick Rothenberg LLP

*Data assumes: where both members of a couple are earning, the income is split two thirds to one third; all earners work 30+ hours; no investment income received; all children under 16. Tables include tax credits (working and child tax credits and child benefit where applicable; no pension contributions or gift aid payments. Tables do not include blind person’s allowance; transferable allowance only available to married couples and civil partners who are not in receipt of married couple’s allowance, and only where a spouse or civil partner has not used all of their personal allowance and their partner is not a higher or additional rate taxpayer

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