What the Budget means for your taxes, explained with simple tables

Most should find themselves with a little extra in their pockets with increases to the personal allowance and the basic rate band but no increases to income tax rates or National Insurance

Philip Hammond holds the red case as he departs 11 Downing Street to deliver his budget (Getty)

Most taxpayers should find themselves with a little extra in their pockets, following a Budget that announced increases to the personal allowance and the basic rate band but no increases to income tax rates or National Insurance.

The personal allowance increase of £350 up to £11,850 from April 2018 is worth an extra £70 per tax year to basic rate taxpayers. Combined with the increase in National Insurance thresholds, many taxpayers earning up to £45,000 should take home an extra £8 per month. Taking into account the increase in the basic rate threshold (which is the amount at which individuals start to pay tax at 40 per cent) from £45,000 to £46,350, higher rate taxpayers (those earning up to £100,000) should find themselves £20 better off per month; an extra £240 over the course of 2018/19.

For pensioners who do not pay National Insurance the net increase will be slightly lower for basic rate tax payers, who will still be £8 per month better off. Pensioners who pay tax at higher rates will be £28 per month better off (£336 over the course of the tax year).

It also pays for basic rate taxpayers to be married as an married couple with one basic rate earner and one child will take home a whole £1 more each month than an unmarried couple in the same position. Married pensioners look to be the biggest winners, with those earning over £150,000 taking home an extra £57 per month – possibly not the intended effect of a Budget billed as being for the ‘next generation.’

So whilst everyone appears to be at least slightly better off, those taxpayers relying on investment income to fund their living costs may remember that the last Budget announced a reduction in the dividend allowance from £5,000 to £2,000, from April 2018.

Married (or civil partnership) couple, two earners, two children

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	21,206	21,206	-
£15,000	23,936	23,967	+3
£20,000	26,349	26,457	+9
£25,000	28,212	28,340	+11
£30,000	29,895	30,035	+12
£35,000	32,148	32,314	+14
£40,000	35,548	35,751	+17
£45,000	38,948	39,151	+17
£50,000	42,348	42,551	+17
£60,000	49,148	49,351	+17
£70,000	55,781	56,119	+28
£80,000	61,319	61,656	+28
£90,000	66,259	66,597	+28
£100,000	72,393	72,730	+28
£125,000	87,726	88,063	+28
£150,000	102,559	103,032	+39
£175,000	113,726	114,198	+39

Married (or civil partner) couple, one earner, two children

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	20,986	21,017	+3
£15,000	22,866	22,974	+9
£20,000	24,216	24,324	+9
£25,000	25,566	25,674	+9
£30,000	26,916	27,024	+9
£35,000	29,098	29,207	+9
£40,000	32,498	32,607	+9
£45,000	35,668	35,770	+9
£50,000	38,568	38,805	+20
£60,000	42,580	42,816	+20
£70,000	48,380	48,616	+20
£80,000	54,180	54,416	+20
£90,000	59,980	60,216	+20
£100,000	65,780	66,016	+20
£125,000	75,680	75,776	+8
£150,000	90,180	90,276	+8
£175,000	103,430	103,526	+8

Married pensioners (both born after 5 April 1935)

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	10,000	10,000	-
£15,000	15,000	15,000	-
£20,000	19,863	19,940	+6
£25,000	24,197	24,274	+6
£30,000	28,530	28,607	+6
£35,000	32,600	32,703	+9
£40,000	36,600	36,740	+12
£45,000	40,600	40,740	+12
£50,000	44,600	44,740	+12
£60,000	52,600	52,740	+12
£70,000	60,267	60,677	+34
£80,000	66,933	67,343	+34
£90,000	73,600	74,010	+34
£100,000	80,267	80,677	+34
£125,000	96,933	97,343	+34
£150,000	112,600	113,280	+57
£175,000	124,267	124,947	+57

Single pensioner

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	10,000	10,000	-
£15,000	14,300	14,370	+6
£20,000	18,300	18,370	+6
£25,000	22,300	22,370	+6
£30,000	26,300	26,370	+6
£35,000	30,300	30,370	+6
£40,000	34,300	34,370	+6
£45,000	38,300	38,370	+6
£50,000	41,300	41,640	+28
£60,000	47,300	47,640	+28
£70,000	53,300	53,640	+28
£80,000	59,300	59,640	+28
£90,000	65,300	65,640	+28
£100,000	71,300	71,640	+28
£125,000	81,700	81,900	+17
£150,000	96,700	96,900	+17
£175,000	110,450	110,650	+17

Single person, no children

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	11,082	11,113	+3
£15,000	13,480	13,581	+8
£20,000	16,880	16,981	+8
£25,000	20,280	20,381	+8
£30,000	23,680	23,781	+8
£35,000	27,080	27,181	+8
£40,000	30,480	30,581	+8
£45,000	33,880	33,981	+8
£50,000	36,780	37,016	+20
£60,000	42,580	42,816	+20
£70,000	48,380	48,616	+20
£80,000	54,180	54,416	+20
£90,000	59,980	60,216	+20
£100,000	65,780	66,016	+20
£125,000	75,680	75,776	+8
£150,000	90,180	90,276	+8
£175,000	103,430	103,526	+8

Single person, one child

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	17,493	17,524	+3
£15,000	19,143	19,244	+8
£20,000	20,493	20,594	+8
£25,000	21,843	21,944	+8
£30,000	24,756	24,857	+8
£35,000	28,156	28,257	+8
£40,000	31,556	31,657	+8
£45,000	34,956	35,057	+8
£50,000	37,856	38,092	+20
£60,000	42,580	42,816	+20
£70,000	48,380	48,616	+20
£80,000	54,180	54,416	+20
£90,000	59,980	60,216	+20
£100,000	65,780	66,016	+20
£125,000	75,680	75,776	+8
£150,000	90,180	90,276	+8
£175,000	103,430	103,526	+8

Single person, self-employed

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	10,989	11,007	+2
£15,000	13,537	13,625	+7
£20,000	17,087	17,175	+7
£25,000	20,637	20,725	+7
£30,000	24,187	24,275	+7
£35,000	27,737	27,825	+7
£40,000	31,287	31,375	+7
£45,000	34,837	34,925	+7
£50,000	37,737	38,000	+22
£60,000	43,537	43,800	+22
£70,000	49,337	49,600	+22
£80,000	55,137	55,400	+22
£90,000	60,937	61,200	+22
£100,000	66,737	67,000	+22
£125,000	76,637	76,760	+10
£150,000	91,137	91,260	+10
£175,000	104,387	104,510	+10

Unmarried couple, both earning

Salary	Net Income 2017/2018	Net Income 2018/2019	Monthly gain/loss 2018/2019
£10,000	11,302	11,302	-
£15,000	14,780	14,811	+3
£20,000	19,013	19,114	+8
£25,000	22,926	23,047	+10
£30,000	26,659	26,792	+11
£35,000	30,359	30,525	+14
£40,000	33,759	33,962	+17
£45,000	37,159	37,362	+17
£50,000	40,559	40,762	+17
£60,000	47,359	47,562	+17
£70,000	53,993	54,330	+28
£80,000	60,126	60,463	+28
£90,000	66,259	66,597	+28
£100,000	72,393	72,730	+28
£125,000	87,726	88,063	+28
£150,000	102,559	103,032	+39
£175,000	113,726	114,198	+39

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

*Data assumes: where both members of a couple are 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