22 Mar 2007

How did the budget affect me?

I managed to get a paper on the way to work this morning and try and diagnose how it might affect me. Obviously pretty much all of it will affect me at some point, but the short term gains and loses were what I was interested in.

There is a planned decrease in income tax, to the lowest for 75 years, but this is almost exactly offset by other changes in National insurance contributions and the abolition of the 10% bracket - so not much either way there.

The ISA limit has been increased to £7,200 - not a significant rise so no major benefits to be had there either

Car Tax (oh dear) - I was dreading this, but it would seem that at first glance at the CO2 figures of our car, we just scrape under being a group D, and the big hike in prices only applies to that group, so I might have avoided the increase to £400 in 2008!

The biggest hit for me is corporation tax on small businesses is rising by 3%, which is going to be around my neck until I'm making £150k profit a year

We will get some benefits from a rise in child allowance. With a big emphasis on being green (which we try our hardest to do at home) the "waste tax" is interesting. Out bin at home hardly gets full at the end of the week, so hopefully any weighed waste tax would bot be too hard on us.

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