Eight Ways Rishi Sunak's Budget Could Impact You

Eight Ways Rishi Sunak's Budget Could Impact You

Opening his second budget speech of 2021, the chancellor promised a stronger UK economy. The good news is the UK is recovering faster than its major competitors from Covid, the chancellor told MPs.

Rishi Sunak says the Office for Budget Responsibility (OBR) has revised up its forecasts for UK economic growth. The OBR now expects gross domestic product (GDP) to expand by 6.5% this year compared to the 4% it forecast at the Budget in March. This is below what the Bank of England expects - it is predicting 7.4% growth.

Budgets are typically a combination of giving with one hand and taking with the other – winners and losers as the government does its best to boost economic growth whilst keeping public spending in check. In reality, most people will see little difference in their daily lives and must continue to row their own boat without looking to the government to take care of everything.

Here are 8 ways you could be affected.

1. Universal credit boost

If you are working and in receipt of universal credit top-up benefits, you are probably affected by what is officially known as the taper rate. That means the universal credit payment you receive is reduced as you earn more.

Depending on their circumstances around two million would be better off, but another two million claimants will see no benefit because they either do not work or do not earn enough.

It is a significant policy in tackling the rising cost of living which will be brought in "within weeks" and no later than 1 December. It comes after criticism of cancelling the £20-a-week universal credit uplift given during the pandemic which had benefitted 5.5 million people.

2. Rising cost of living - inflation

Everyone knows that prices are going up in the shops and on household bills. The Chancellor confirmed the cost of living is expected to rise by 4% over the next year, mirroring market inflation expectation.

The freeze on fuel duty will continue for at least another year, to help drivers already are hit by higher prices at the pumps.

About 60% of the price we pay for petrol and diesel is tax - a mixture of fuel duty and VAT.

No measures to help householders with rising domestic gas and electricity bills.

3. Minimum wage increase

As expected, workers on minimum wages will receive an above-inflation pay rise next April. For those aged 23 and above the rate - known as the National Living Wage - will go up by 6.6%, as the hourly rate increases from £8.91 to £9.50.

Minimum wage increases from 1 April:

National Living Wage for those aged 23 and over: From £8.91 to £9.50 an hour

National Minimum Wage for those aged 21-22: From £8.36 to £9.18

National Minimum Wage for 18 to 20-year-olds: From £6.56 to £6.83

National Minimum Wage for under-18s: From £4.62 to £4.81

The Apprentice Rate: From £4.30 to £4.81

Public sector staff will also receive a pay rise in April when the freeze on wages in place during the pandemic is lifted. How much this amounts to, and whether it equates to more than the rising cost of living, will be decided at later date.

The government's official, independent forecasters - the Office for Budget Responsibility - said that real incomes for everyone would typically rise very slowly in the coming years. Income rises, after taking into account inflation and changes in tax will be no higher than 1.5% a year for each year up to and including 2026.

4. Alcohol duty overhaul

Drinking is getting more expensive, with pub chains warning that higher wages and energy costs will mean much higher prices for a pint.

However, Mr Sunak announced an overhaul which he described as "the most radical simplification of alcohol duties for 140 years", coming into force in February 2023.

This will lead to higher-strength drinks going up in price, but lower duty on drinks ranging from sparkling wine to draught beer.

The cost of smoking is rising again, with an above-inflation rise in duty on cigarettes and an 11% rise in duty on hand-rolling tobacco, taking effect within hours.

5. Your tax bill

Mr Sunak said he planned to reduce taxes during the rest of this Parliament.

Although announced before this Budget, two massive tax decisions had already been made that will affect your money in the coming years.

In the last Budget, Mr Sunak said the thresholds as which income tax is paid would be frozen at April 2021 levels for five years (although Scotland has different levels). That means pay rises will push more people into higher tax bands.

In September, the government also announced employees, employers and the self-employed would all pay 1.25p more in the pound for National Insurance (NI) from April 2022 to fund social care.

6. Flying

The cost of a domestic flight ticket could be cut, but very long-haul flights could get more expensive.

That is because the chancellor has made changes to Air Passenger Duty - a levy paid by airlines, but ultimately funded by passengers through the cost of their tickets.

7. The cladding crisis

Many homeowners of high-rise flats have faced crippling costs owing to the cladding crisis, following the Grenfell Tower tragedy.

A levy or tax on the biggest property developers of high rises to pay for the removal of dangerous cladding has been confirmed by the chancellor.

8. Money lessons

To help those of the youngest age, there is extra funding for projects supporting new parents.

There is also a new UK-wide programme to improve numeracy skills. The chancellor said that individuals with poor numeracy faced up to £1,600 a year in lost earnings, according to the charity National Numeracy.

The government will spend billions on schools, police and the court service, whilst trying to balance the books and reduce taxes before the next election.

A further £24bn will be earmarked for "a multi-year housing settlement", £11.5bn of which be set aside to build up to 180,000 new affordable homes, which he says is the largest cash investment in a decade. Brown-field land will be targeted for new homes, he says.

Rishi Sunak briefly mentioned a visa scheme to attract the brightest and best to come to the UK to work or start a business.

With inflation rising and interest rates due to be increased, there has never been a more important time to stay informed and never stop learning, especially if you want to invest in property.

Can you make money on social media or from property using none of your own money?  

The Recurring Income Summit | 2-Day Online Session, 29th - 30th October

 

Sign Up For Free! https://bit.ly/3nu2d7M

Bringing together a collection of wildly successful entrepreneurs and industry elites, the Recurring Income Summit will bring together and inspire the entrepreneurs of today and the future.

Cashflow is KING. To create a passive and recurring income, you need to creare multiple streams of income.

On the 29th - 30th October, you will learn the tools and techniques being used right now by creators, influencers and entrepreneurs to give them stable, continuous cashflows.

From real people getting real results now...

Cash can be spent and burnt. Once it’s gone it’s gone. But recurring income is different - you can rely on it to be there. True freedom is building assets that create recurring income that only you can control.

This is not your standard event - you will be walking away with the knowledge you need to seize the BIGGEST recurring income opportunities of 2021 and unlock the secrets you will need to thrive in the post lockdown environment.

Walk away with the knowledge you need to seize the biggest recurring income opportunities of 2021 and unlock the secrets you need to thrive in the post lockdown market.

Sign Up For Free! https://bit.ly/3nu2d7M

At the Recurring Income Summit, you'll be joining Rob Moore and a host of internationally renowned speakers, including...

·        Rob Moore Entrepreneur, Serial podcaster & International speaker

·        Rafe Offer Former Global Marketing Director For Coca-Cola

·        John Lee Social Media Guru & founder of Wealth Dragons Online

·        Kevin Gaskell Former CEO of Porsche, BMW and Lamborghini

·        Candice Mama one of Vogue Magazine’s top 33 most inspiring women in the world

·        Kevin McDonnell No Money Down Property Expert & Multi-Millionaire Business Owner

·        Paul O'Mahony Entrepreneur, Author, Product Creator and Public Speaker

·        Alfie Best Old-school, blood and blisters, self-made multimillionaire worth £560M+

·        Simon Coulson Internet Entrepreneur

Exclusive Bonus!

Everyone attending the Recurring Income Summit will receive a copy of "How To Work Once And Earn Forever" downloadable report!

The key to passive income is reinvesting some profits from your recurring revenue back into creating more assets so you develop a mass compounding effect of multiple assets creating multiple passive income streams.

This is a FREE gift to you to help you learn the 14 ways to create passive, recurring income.

Sign Up For Free! :- https://bit.ly/3nu2d7M

 

#interestrates #property #inflation #financialeducation #freetraining #mortgages #propertyinvestment #investing #passiveincome #robmoore #johnlee #nomoneydownpropertyinvesting #socialmedia #socialmediamarketing #makemoneyonline #paulomahony

Minimum Wage Set To Rise By 6.6% To £9.50 per hour

Minimum Wage Set To Rise By 6.6% To £9.50 Per Hour

The National Living Wage is widely expected to be increased by 6.6% to £9.50 from £8.91 for workers over 23 in this week’s budget. The pay increase for millions of workers is twice the current cost of living rises and will put further inflationary pressure on businesses to pass the additional costs to consumers.

Retail sales continue to fall, as landlords ramp up the pressure on thousands of tenants in rent arrears.

Petrol prices hit record high in UK as inflation continues to soar towards a market predicted rate of over 4% by the year end.

Interest rates expected to rise to 0.25% to curb runaway inflation brought on by a lethal cocktail of higher transportation, food and commodity prices, staff shortages and central bank money printing on an industrial scale.

Rishi Sunak is expected to announce a £2bn investment into building new homes on derelict or unused land in England in Wednesday's Budget.

The UK Chancellor wants 160,000 greener homes built on brownfield land the size of 2,000 football pitches, and has also pledged £9m towards 100 urban "pocket parks" across the UK.

There are also rumours that he will introduce more tax hikes including Capital Gains Tax (CGT). CGT is paid assets, such as shares, a business or a second home, are sold at a profit.

Conservative governments are traditionally ‘low tax, low spend’ administrations, but Rishi Sunak has to get the country out of the worst recession in 300 years, controlling inflation, as well as balancing the books after borrowing £400 billion to spend on propping up the economy during enforced lockdowns. UK debt is over £2 trillion.

In further bad news, the BBC appears to be dropping strong hints that the country could be forced into yet another Christmas lockdown as infection rates rise.

See: 6 Budget Changes That Could Hit Your Pocket

Financial education in investing is the key to building and keeping wealth. Never stop learning!

Keep watching or listening to my free podcasts on iTunes and subscribe to my YouTube channel for regular financial news and updates.

If you would like to learn more about investing and managing your money, become a professional property investor, or would like to be financially free without working any harder, watch this free on demand training.

I will give a special free gift which can help you to immediately transform your finances when you attend the online training.

Click on this link to watch the free training now https://bit.ly/3wLWqx2

Rishi Sunak's Budget - 6 Changes That Could Hit Your Pocket

October Budget 2021 6 Changes That Could Hit Your Pocket

UK Chancellor Rishi Sunak will set out the government's tax and spending plans on Wednesday 27 October.

The BBC is predicting six tax and budget changes at a time when Rishi Sunak has already announced a £7 billion spending spree on northern transport links and childcare help for families. There is also a possibility of extended loan support, due to end in December for businesses struggling to come out of the recession, or subject to another winter lockdown?

This will be the second Budget of the year, after one in March, and will coincide with the conclusions of the 2021 Spending Review, which will give details of how government will fund public services for the next three years.

Here are six possible things to watch out for in the Budget that could affect your personal finances.

1. VAT on energy bills

The chancellor is reportedly considering a cut to the 5% rate of value added tax on household energy bills.

The move would be popular and timely against the background of soaring energy bills this winter and is something the government is now able to do because of Brexit.

But the move could attract criticism as it would - in effect - mean subsidising fossil fuels ahead of the climate summit.

Also, a VAT cut on domestic energy bills would cost about £1.5bn a year, which may just be too much for the chancellor.

2. Alcohol tax

There are rumours the chancellor is planning to simplify the way that alcohol is taxed in the UK.

The 2019 Conservative election manifesto promised to review it, so now could be the time.

One suggestion is to reduce the premium on sparkling wine to the same level as still wine, which could knock 83p off a bottle of Champagne or Prosecco.

"The government should stop trying to favour certain parts of the industry, instead focusing on removing distortions and creating a simpler system of alcohol taxes targeted at socially costly drinking," said Kate Smith, associate director of the Institute for Fiscal Studies.

The drinks levies have been in place since the 1600s and raise £12bn a year for the government.

3. Capital Gains Tax rates

There are rumours that the current Capital Gains Tax rates may be tinkered with.

The tax is paid when people sell assets such as shares or a second home.

It's been suggested that rates could be aligned more closely with income tax rates, which could mean scrapping the current tax rates of 10% and 20% (or 18% and 28% for property) and instead making everyone pay income tax rates on their gains.

A report by the Office of Tax Simplification, published in November 2020, recommended that CGT rates should be increased to bring them into line with income tax.

But it would be unlikely to raise significant extra amounts of tax, as it is typically paid by only about 275,000 taxpayers and raises less than £10bn a year.

Shares can be sold quickly to avoid higher CGT, but properties can take months to sell.

4. Student loan threshold

There are reports that graduates may be asked to start paying back student loans earlier.

The chancellor could do that by lowering the threshold at which people start repaying their student loans, a move that could save the Treasury about £2bn a year.

Currently, English and Welsh students who enrolled at university after 2012 pay 9% of everything they earn above £27,295 per year. They repay the same 9% until the loan is fully repaid or until 30 years after graduating.

If the threshold were reduced to £25,000, it would cost anyone earning more than the current limit an extra £206 a year, while if it were slashed to £20,000, it would cost an extra £656 a year.

Ministers are rumoured to have proposed cutting the threshold to as low as £23,000 and giving graduates 40 years as opposed to 30 to repay their debt.

5. Minimum wage rise

In his March Budget, Mr Sunak announced that the National Living Wage (what the governments call the minimum wage) would increase for workers over the age of 23.

Since then, the government has come under pressure to help employees further - especially as younger workers have been some of the worst hit by the economic downturn.

One solution the chancellor has been reportedly looking at is to increase the National Living Wage by 5.7% to £9.42 per hour from its current rate of £8.91.

That would bring it close to the Living Wage Foundation's current recommendation of £9.50 an hour.

6. Pension higher rate allowance

The government could raise cash by cutting tax relief on pension savings for those on high salaries.

But pension experts warn such a move would not be as simple as it sounds, Steven Cameron, pensions director at Aegon, said: "A move to a flat rate of pensions tax relief, rather than the current system where relief is based on the rate of income tax paid, would be far from simple to implement."

He said it would be particularly difficult for defined-benefit schemes and could mean medium to high earners, including doctors in public sector schemes, facing big tax bills.

"Removing higher-rate relief would be a direct attack on middle Britain, leading to people who do the right thing and save for their future being hit with extra tax costs," said Tom Selby, head of retirement policy at AJ Bell. Source BBC

Financial education in investing is the key to building and keeping wealth. Never stop learning!

Keep watching or listening to my free podcasts on iTunes and subscribe to my YouTube channel for regular financial news and updates.

If you would like to learn more about investing and managing your money, become a professional property investor, or would like to be financially free without working any harder, watch this free on demand training.

I will give a special free gift which can help you to immediately transform your finances when you attend the online training.

Click on this link to watch the free training now https://bit.ly/3wLWqx2

What surprises can you expect from the budget?

What can property buyers expect from the UK Budget?

Will Stamp Duty Holiday be extended by Chancellor Rishi Sunak in the 3 March Budget?

Possible extension of the stamp duty holiday in England?

The tax concession in England and Northern Ireland - no stamp duty is paid on the first £500,000 of a property sale – ends in March. For some buyers in more expensive areas this will mean the end of a tax saving of up to £15,000.

Zoopla told the BBC that between 70% and 82% of sales would be stamp duty free if they completed by the end of March.

As many as 300,000 sales could fall through if the stamp duty break is not extended.

Zoopla also predicts a drop-off in sales of 20% fewer transactions between April and June compared with the quarter of the year.

An online petition calling for a six-month extension to the stamp duty holiday has been signed by nearly 150,000 people.

Mortgage guarantee to help buyers with 5% deposit

A new ‘mortgage guarantee scheme’ to help people with small deposits obtain a higher ‘loan-to-value’ mortgage to get on the property ladder is set to be announced.

Government incentives to lenders to bring back 95% mortgages

Shares in building companies shot up over 5% on the news yesterday

£126m boost for new “flexi-job” traineeships in England

Tax increases to pay for the £270 billion of borrowing last year?

Find out more and watch the Budget live on the BBC, 3 March 2021 at 12.30pm.

As Boris Johnson announces a ‘Roadmap’ out of Lockdown, the UK vaccination programme points to an economic bounce back this summer.

Have you tried to start an online business, but been let down by software and web developers?

New free game changing system to help launch your online marketing business and change your life…

Free Access to GrooveFunnels - the new best way to build better funnels

- Free for LIFE

- No games. No fine print.

- No credit card needed ever!

- $99/month value… Now free.

- Grab your account while you still can!

The world has changed so much recently.

And during these times, I am always excited whenever I find new solutions to help you in whatever way I can.

I’m sure you’ve heard of software tools designed to help you build websites, sales pages and online funnels.

Because sales funnels are proven to be effective, any such tools could reasonably command high monthly fees to access.

Unfortunately, this could also be out of reach for many business owners and marketers who are on a budget, especially during uncertain times.

This is where GrooveFunnels comes in.

GrooveFunnels is the new, better way to build funnels and sell digital products online.

It’s not just one or two simple tools, or solely a “funnel builder,” either.

This is your complete digital products and services online sales system.

Co-founded by Mike Filsaime, one of the top Internet marketing experts in the world, GrooveFunnels is a suite of products that includes all the tools you need to run your online business.

They have built a complete, all-in-one platform with all the essential tools so you don’t need to worry about multiple subscriptions to a variety of services that would easily add up to thousands per month.

Finally, you can get instant access to practically everything you need to sell your products and services online.

… Including:

- Full product funnels

- Brand websites with full navigation

- Custom domain names

- 1-click upsell capabilities

- Upsells, downsells and order bumps

- The world’s most powerful affiliate program

- And so much more…

Yes, this is a game changer.

And today, for a limited time only, you can get started for absolutely free.

No credit card. Lifetime access. Unlimited usage. Forever.

I’m not sure about you, but I will be switching my entire business over to GrooveFunnels.

Literally everything I need, and save thousands a month in the process.

You’ll have to see it to believe.

Take a closer look at it yourself, and pick up your free account while you’re there:

https://groovepages.groovesell.com/a/uy9VcdqIvopT

Let me know what you think.

P.S. Mike told me that he is making some huge upgrades to his tools over the next several days, and we’re not sure if this will continue to be free for long. However, if you get your account right now, you’ll still be able to keep your account for life, including all the future updates to the tools. Take some time to learn all about the software, but be sure to grab your free account before it’s too late.