Working parents, beer drinkers and savers come out on top in this year’s budget, with large ISA allowances, childcare tax breaks and cheaper pints on the cards in 2014/15. Here we round up the highlights from George Osborne’s budget and explain how they might affect you.
2014 Budget Round-up- Beer Drinkers Rejoice!
Alcohol and Cigarettes
Alcohol and cigarette duty is the amount of tax that companies pay for alcohol and tobacco. The higher the duty, the more we end up having to pay. According to George Osborne:
– Alcohol duty will rise overall in line with inflation
– Cigarette duty will rise by 2% above inflation
– Duty on Scotch whisky and cider has been frozen
– Beer duty will be cut by a penny
This means that you will be paying more for your cigarettes but less for a pint. A result for beer drinking non-smokers everywhere!
The ISA Allowance
From July 1 2014, the amount you can put into an Individual Savings Account (ISA) will rise to £15,000, and you can also save the full amount in cash. Every year you are given a cash ISA allowance, and the interest on this is not taxed. The cash ISA allowance currently stands at £5,760, but is being trebled in the next tax year.
Whilst the rise sounds like great news for savers, according to Martin Lewis at today’s best buy easy access cash ISA rate the increase will give you a tax gain of just £30.
From autumn 2015, working parents with children under the age of 12 will get a tax break of up to £2,000 per child. This is great news for working parents, but not much help if you are a stay at home mum or if one parent stays at home to take care of the children.
Personal Tax Allowance
Everyone earning less than £100,000 will pay less income tax because of a rise in personal tax allowance. Personal tax allowance is the amount of money you can earn before you have to start paying income tax. Not only will it rise from £9,220 to £10,000 next month, but it will rise again next year to £10,500.
There are plans to build 200,000 new homes for families across the UK, and the government “Help to Buy” scheme will be extended until 2020. In addition, homes are predicted to save £15 a year in energy bills because of changes to the way environmental charges are placed on energy bills- this is in addition to the £50 annual saving already announced from an earlier deal.
Fuel and Bingo
Good news for drivers everywhere- the fuel duty rise planned for September will not happen. And let’s not leave out the bingo players, who will benefit from a reduction in bingo duty to 10%.
But let’s be honest, the big news from the 2014 budget is the new twelve sided £1 coin to be introduced in 2017, designed to reduce counterfeiting. Isn’t it a piece of beauty?