An interactive tax calculator has been launched to help people figure out exactly how Chancellor Rachel Reeves’ latest autumn Budget will impact their wallets.
Delivered on Wednesday, this was Ms Reeves’ second Budget, with a clear focus on raising finances to plug a £26 billion gap in public finances.
For many, the advertisement may feel like a blend of good and bad news; some will see pay envelope rises, while others could face advanced levies.
Then there’s a look at the crucial changes and how you can calculate the effect on your particular finances.
Major Tax and Income Changes in the Autumn Budget
Ms Reeves unveiled a range of measures aimed at supporting families floundering with the cost of living, while also raising profit.
The long-awaited plan to scrap the two-child benefit cap is one of the most significant, anticipated to bring £3bn but lift hundreds of thousands of children out of poverty.
Other key measures include:
- Introduction of a ‘mansion tax’ for high-value properties.
- New tax-raising powers for local mayors.
- Permanent reductions in business rates for over 750,000 retail, hospitality, and leisure properties.
- A one-year freeze on rail fares.
The Office for Budget Responsibility (OBR) also streamlined its profitable vaticinations. While growth for 2025 has been increased from 1% to 1.5%, projections for 2026 – 2029 have been downgraded, showing slower profitable expansion in the coming years.
How can a Tax Calculator help to See Your Budget Impact?
The Budget brings changes that will hit workers’ wallets directly. The minimum wage for employees aged 21 and over will rise to £12.71 per hour from April next year.
Still, income duty thresholds are fixed, meaning more people will slip into advanced duty bands. By 2029/30, a redundant 780,000 introductory-rate, 920,000 advanced-rate, and 4,000 fresh-rate taxpayers are anticipated.
Pensions are also affected by benefits made through payment immobilisation above £2,000 per time will face National Insurance from 2029, raising billions in fresh profit.
Environmental and lifestyle measures include:
- A 3p per mile ‘pay per mile’ tax on electric vehicles from 2028, rising annually with inflation.
- Alcohol duty will increase in line with inflation.
- Certain drinks, including pre-packaged lattes and milkshakes, will now be subject to the sugar tax.
To make sense of these changes, people can use an interactive UK duty calculator, which allows individuals to see exactly how the Autumn Budget will affect their particular finances. It’s a handy tool for families, workers, and pensioners likewise.
Measures to Ease the Cost of Living
While the Budget includes several duty hikes, Ms Reeves also introduced measures aimed at easing everyday costs.
Energy bills are anticipated to drop by an normal of £150 per ménage coming time after scrapping the Energy Company Obligation scheme.
This, combined with the minimum wage rise and targeted tax changes, is designed to balance financial relief with the need to fund public services.
For ordinary families, knowing exactly how these changes will hit your bank account can be tricky. That’s where the Autumn Budget tax calculator comes in; it lets you input your earnings, benefits, and pension contributions to see a clear picture of your finances under the new rules.
