will i be better or worse off in april 2011?

lizzymouse

can anyone advise on this?

i earn just under £19,000 a year, i am married but seperated so live alone, no kids.

how will income tax changes and national insurace changes affect me , does anyone know?

Also, does anyone know about public sector pension contribution incresase, i have heared this could go up by up to about £50 per month, but my pension provider are not able to advise further, is this likely to happen anytime soon?

trying to budget for the coming year so any advice appreciated!

MrsManda

I think you're likely to be slightly better off as your personal allowance (what you earn which is not counted for income tax) will be £7475 rather than £6475 in 2010/11.

kelloggs36

There is talk of increasing the tax allowance by a further £500 per year in the March budget, but not yet confirmed. National insurance is going up by 1%. Depends on whether you smoke, drink etc too with all the other taxes they fiddle with every year. I would say you will probably be a tiny bit better off. Our family should be also a tiny bit better off - whilst we lose all our tax credits (all of £8.20 per month), the increased tax allowance will apply to both of us, so we will have a net gain, BUT then we will both be paying the extra NI conts too, so difficult to say right now, but no real change except in real terms, where we all take a pay CUT due to inflation and no pay increases again

[Deleted User]

MrsManda wrote: »

I think you're likely to be slightly better off as your personal allowance (what you earn which is not counted for income tax) will be £7475 rather than £6475 in 2010/11.

Which equates to a Tax saving of £200 per year, but then NI is going up 1%, personally I think it's giving with one hand and taken with the other!

£19000 = £1583.33 per Month Tax £192.08 NI £117.72 Net £1273.53

Obviously I haven't included your pension in the above calc as I don't know the amount or type of scheme but hope you can use this as guidance

Sixer

http://www.thesalarycalculator.co.uk/salary.php

This will give you figures for this year and next - you can include pension contributions into the calculation, and anything else that gives you a non-standard tax code.

zagfles

kelloggs36 wrote: »

There is talk of increasing the tax allowance by a further £500 per year in the March budget, but not yet confirmed. National insurance is going up by 1%. Depends on whether you smoke, drink etc too with all the other taxes they fiddle with every year. I would say you will probably be a tiny bit better off. Our family should be also a tiny bit better off - whilst we lose all our tax credits (all of £8.20 per month), the increased tax allowance will apply to both of us, so we will have a net gain, BUT then we will both be paying the extra NI conts too, so difficult to say right now, but no real change except in real terms, where we all take a pay CUT due to inflation and no pay increases again

They are increasing the NI threshold as well as the rate, if you earn under 20k (as the OP) you'll pay less NI, if you earn over 20k you'll pay more.

zagfles

Deleted_User wrote: »

Which equates to a Tax saving of £200 per year, but then NI is going up 1%, personally I think it's giving with one hand and taken with the other!

If you earn under 20k you'll pay less tax AND less NI.

lizzymouse

thank you for responces:)