Autumn Statement 2016: How tax threshold changes will affect you

It's good news for those on average and above average incomes

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Chancellor Philip Hammond announced a raft of tax changes as part of his Autumn Statement, including a cut in Corporation Tax and increase in the tax-free allowance on income to £12,500.

In broad terms, if you are fortunate enough to have a job or be on a pension, you will see either a modest increase in your income as a result of the changes, or no change.

The analysis from accountants Blick Rothenberg* shows that the effect of increasing the tax threshold for income tax and raising the threshold for the higher rate of tax both benefit those on average and above average earnings.

Those who are on benefits, depending on their personal situation, may still see a reduction in their circumstances. 

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Married couple, two earners, two children

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000 £21,206 £21,206 +£0
£15,000 £23,923 £23,936 +£1
£20,000 £26,227 £26,349 +£10
£25,000 £28,077 £28,212 +£11
£30,000 £29,740 £29,895 +£13
£35,000 £31,923 £32,148 +£19
£40,000 £35,323 £35,548 +£19
£45,000 £38,723 £38,948 +£19
£50,000 £42,153 £42,348 +£19
£60,000 £48,923 £49,148 +£19
£70,000 £55,357 £55,781 +£35
£80,000 £60,894 £61,319 +£35
£90,000 £65,834 £66,259 +£35
£100,000 £71,968 £72,393 +£35
£125,000 £87,301 £87,726 +£35
£150,000 £101,934 £102,559 +£52
£175,000 £113,101 £113,726 +£52

 

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Married couple, one earner, two children

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000  £20,793 £20,986 +£1
£15,000 £22,743 £22,866 +£10
£20,000 £24,093 £24,216 +£10
£25,000 £25,443 £25,566 +£10
£30,000 £26,793 £26,916 +£10
£35,000 £28,976 £29,098 +£10
£40,000 £32,376 £32,498 +£10
£45,000 £35,356 £35,668 +£26
£50,000 £38,256 £38,568 +£26
£60,000 £42,267 £42,580 +£26
£70,000 £48,067 £48,380 +£26
£80,000 £53,867 £54,180 +£26
£90,000 £59,667 £59,980 +£26
£100,000 £65,467 £65,780 +£26
£125,000 £75,567 £75,680 +£9
£150,000 £90,067 £90,180 +£9
£175,000 £103,317 £103,430 +£9

 

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Married pensioners

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000 £10,000 £10,000 £0
£15,000 £15,000 £15,000 £0
£20,000 £19,753 £19,863 +£9
£25,000 £24,087 £24,197 +£9
£30,000 £28,200 £28,530 +£11
£35,000 £32,400 £32,600 +£17
£40,000 £36,400 £36,600 +£17
£45,000 £40,400 £40,600 +£17
£50,000 £44,400 £44,600 +£17
£60,000 £52,400 £52,600 +£17
£70,000 £59,667 £60,267 +£50
£80,000 £66,333 £66,933 +£50
£90,000 £73,000 £73,600 +£50
£100,000 £79,667 £80,267 +£50
£125,000 £96,333 £96,933 +£50
£150,000 £111,600 £112,600 +£83
£175,000 £123,267 £124,267 +£83

 

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Single pensioner

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000 £10,000 £10,000 £0
£15,000 £14,200 £14,300 +£8
£20,000 £18,200 £18,300 +£8
£25,000 £22,200 £22,300 +£8
£30,000 £26,200 £26,300 +£8
£35,000 £30,200 £30,300 +£8
£40,000 £34,200 £34,300 +£8
£45,000 £37,800 £38,300 +£42
£50,000 £40,800 £41,300 +£42
£60,000 £46,800 £47,300 +£42
£70,000 £52,800 £53,300 +£42
£80,000 £58,800 £59,300 +£42
£90,000 £64,800 £65,300 +£42
£100,000 £70,800 £71,300 +£42
£125,000 £81,400 £81,700 +£25
£150,000 £96,440 £96,700 +£25
£175,000 £110,150 £110,450 +£25

 

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Single person, no children

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000 £11,069 £11,082 +£1
£15,000 £13,367 £13,480 +£9
£20,000 £16,767 £16,880 +£9
£25,000 £20,167 £20,280 +£9
£30,000 £23,567 £23,680 +£9
£35,000 £26,967 £27,080 +£9
£40,000 £30,367 £30,480 +£9
£45,000 £33,567 £33,880 +£26
£50,000 £36,467 £36,780 +£26
£60,000 £42,267 £42,580 +£26
£70,000 £48,067 £48,380 +£26
£80,000 £53,867 £54,180 +£26
£90,000 £59,667 £59,980 +£26
£100,000 £65,467 £65,780 +£26
£125,000 £75,567 £75,680 +£9
£150,000 £90,067 £90,180 +£9
£175,000 £103,317 £103,430 +£9

 

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Single person, one child

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000 £17,481 £17,493 +£1
£15,000 £19,031 £19,143 +£9
£20,000 £20,381 £20,493 +£9
£25,000 £21,731 £21,843 +£9
£30,000 £24,644 £24,756 +£9
£35,000 £28,044 £28,156 +£9
£40,000 £31,444 £31,556 +£9
£45,000 £34,644 £34,956 +£26
£50,000 £37,544 £37,856 +£26
£60,000 £42,267 £42,580 +£26
£70,000 £48,067 £48,380 +£26
£80,000 £53,867 £54,180 +£26
£90,000 £59,667 £59,980 +£26
£100,000 £65,467 £65,780 +£26
£125,000 £75,567 £75,680 +£9
£150,000 £90,067 £90,180 +£9
£175,000 £103,317 £103,430 +£9

 

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Single person, self-employed

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000 £10,982 £10,989 +£1
£15,000 £13,430 £13,537 +£9
£20,000 £16,980 £17,087 +£9
£25,000 £20,530 £20,637 +£9
£30,000 £24,080 £24,187 +£9
£35,000 £27,630 £27,737 +£9
£40,000 £31,180 £31,287 +£9
£45,000 £34,470 £34,837 +£31
£50,000 £37,370 £37,737 +£31
£60,000 £43,170 £43,537 +£31
£70,000 £48,970 £49,337 +£31
£80,000 £54,770 £55,137 +£31
£90,000 £60,570 £60,937 +£31
£100,000 £66,370 £66,737 +£31
£125,000 £76,470 £76,637 +£14
£150,000 £90,970 £91,137 +£14
£175,000 £104,220 £104,387 +£14

 

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Unmarried couple, both earning

Salary

Net Income 2016/2017 Net Income 2017/2018 Monthly gain/loss 2017/2018
£10,000 £11,302 £11,302 £0
£15,000 £14,767 £14,780 +£1
£20,000 £18,901 £19,013 +£9
£25,000 £22,801 £22,926 +£10
£30,000 £26,534 £26,659 +£10
£35,000 £30,134 £30,359 +£19
£40,000 £33,534 £33,759 +£19
£45,000 £36,934 £37,159 +£19
£50,000 £40,334 £40,559 +£19
£60,000 £47,134 £47,359 +£19
£70,000 £53,568 £53,993 +£35
£80,000 £59,701 £60,126 +£35
£90,000 £65,834 £66,259 +£35
£100,000 £71,968 £72,393 +£35
£125,000 £87,301 £87,726 +£52
£150,000 £101,934 £102,559 +£52
£175,000 £113,101 £113,726 +£52

 

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Tables compiled by Paul Haywood-Schiefer ATT, Blick Rothenberg LLP

*Data assumes: Where both members of a couple earning, the income is split two thirds to one third; All earners work 30+ hours; No investment income received; All children under 16; Tables include tax credits (Working and Child tax credits and Child Benefit where applicable; No pension contributions or Gift Aid payments; Tables do not include blind person's allowance; Transferable allowance only available to married couples and civil partners who are not in receipt of married couple's allowance, and only where a spouse or civil partner has not used all of their personal allowance and their partner is not a higher or additional rate taxpayer.

 

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