BUDGET 1999: HOW THE BUDGET AFFECTS YOUR POCKET
The Budget and You
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.DUAL INCOME FAMILY
1998-99 1999-00 Change
pounds pa pounds pa pounds pa
Income 50,000 50,000 0
Child benefit 1,043 1,043 0
Income tax * (11,981) (11,845) 136
National insurance (3,690) (3,614) 76
Value of MCA 285 197 (88)
Tax relief on pounds 3,500 pension 1,400 1,400 0
Mortgage repayments (5,429) (5,429) 0
Domestic fuel bills (840) (840) 0
Net income 30,788 30,912 124
Duty: Wine (780) (780) 0
Spirits (180) (180) 0
GAIN/(LOSS)
Car benefit 4,667 5,000
Fuel benefit 1,280 1,540
Assumptions:
Dual income family + 2 children. He earns pounds 33,000, she earns pounds 17,000. Company car costing pounds 20,000; 2,000cc; 5,000 business miles pa; fuel provided by employer. Mortgage pounds 80,000; interest rate 7.05%; interest only. Domestic fuel pounds 800 + VAT. Drinks: wine 3 bottles/wk at pounds 5 per bottle; spirits 1 bottle per month at pounds 15 per bottle. * Effect of MCA and pension relief not included in income tax figure. After mortgage, pension and fuel bills.
YOUNG PROFESSIONAL COUPLE
1998-99 1999-00 Change
pounds pa pounds pa pounds pa
Income 100,000 100,000 0
Income tax* (31,551) (31,238) 313
National insurance (4,512) (4,514) (2)
Tax relief on pounds 3,000 pensions each 2,400 2,400 0
Mortgage repayments (9,306) (9,306) 0
Domestic fuel bills (840) (840) 0
Net income 56,191 56,502 311
Duty: Wine (1,820) (1,820) 0
Spirits (180) (180) 0
Cigarettes (1,238) (1,301) (64)
Annualised stamp duty cost (3,000) (3,750) (750)
GAIN/(LOSS)
Car benefit 4,667 5,000
Fuel benefit 1,280 1,540
Assumptions:
Dual income family. No children.
She earns pounds 60,000; he earns pounds 45,000. Company car costing pounds 20,000; 2,000cc; 5,000 business miles pa; fuel provided by employer. Mortgage pounds 135,000;
interest rate 7.05%; interest only. Stamp duty halved as intend to move house every two years to pounds 300,000 property. Domestic fuel pounds 800 + VAT.
Drinks: wine 5 bottles/wk at pounds 7 per bottle; spirits 1 bottle per month at pounds 15 per bottle. She smokes 7 packets of cigarettes a week at pounds 3.40..
*Effect of pension relief not included in income tax figure.
After mortgage, pension and fuel bills.
SINGLE PERSON
1998-99 1999-00 Change
pounds pa pounds pa pounds pa
Income 25,000 25,000 0
Income tax (4,656) (4,558) 98
National insurance (2,234) (2,157) 77
Rent (5,400) (5,400) 0
Domestic fuel bills (420) (420) 0
Net income 12,290 12,465 175
Duty: Wine (415) (415) 0
Petrol (984) (1,014) (30)
Cigarettes (1,238) (1,238) (64)
GAIN/(LOSS)
Assumptions:
Single woman earning pounds 25,000 pa.
Domestic fuel: pounds 400+VAT. Her own car: 10,000 miles pa at 30mpg; unleaded petrol at 65p/litre. Drinks 2 bottles of wine a week at pounds 3.99 a bottle and smokes 7 packets a week at pounds 3.40.
After rent and fuel bills.
PENSIONER COUPLE
1998-99 1999-00 Change
pounds pa pounds pa pounds pa
Income 30,900 30,900 0
Income tax* (4,694) (4,405) 289
Value of MCA 285 197 (88)
Domestic fuel bills (630) (630) 0
Net income 25,861 26,062 201
Duty: Spirits (780) (780) 0
GAIN/(LOSS)
Assumptions:
Recently retired pensioner couple, both aged between 65 and 74.
Domestic fuel pounds 600 + VAT. Non-smokers but drink 1 bottle of scotch per week at pounds 15 per bottle. He is on pounds 19,500 occupational pension + pounds 3,500 SRP.
She is on pounds 6,000 occupational pension + pounds 1,900 SRP. Total pounds 30,107.
*Effect of MCA not included in income tax figure.
After mortgage, pension and fuel bills.
RECENT GRADUATE
1998-99 1999-00 Change
pounds pa pounds pa pounds pa
Income 17,500 17,500 0
Income tax (2,931) (2,893) 98
National insurance (1,484) (1,407) 77
Rent (5,400) (5,400) 0
Domestic fuel bills (420) (420) 0
Net income 7,265 7,440 175
Duty: Beer (1,144) (1,144) 0
Cigarettes (1,238) (1,238) (64)
GAIN/(LOSS)
Assumptions:
Recent graduate earns pounds 17,500 pa.
Rent pounds 450 p.m. Domestic fuel: pounds 400+VAT. Drinks 10 pints beer/wk at pounds 2.20 and smokes 7 packets a week at pounds 3.40.
After rent and fuel bills.
LOW INCOME FAMILY
1998-99 1999-00 Change
pounds pa pounds pa pounds pa
Income 7,280 7,280 0
Family credit 4,378 4,378 0
Child benefit 1,510 1,510 0
Income tax* (617) (482) 135
National insurance (462) (385) 77
Value of MCA 285 197 (88)
Rent (1,560) (1,560) 0
Domestic fuel bills (683) (683) 0
Net income 10,132 10,255 124
Duty: Beer (343) (343) 0
Cigarettes (884) (930) (45)
GAIN/(LOSS)
Assumptions:
WFTC changes not included. 2-parent family with 3 children earning pounds 140 per week. Domestic fuel pounds 650 + VAT. Drinks: 3 pints beer p/wk at pounds 2.20 per pint.
*Effect of MCA not included in income tax figure.
After rent and fuel bills.
ENTREPRENEUR
1998-99 1999-00 Change
pounds pa pounds pa pounds pa
Salary 150,000 150,000 0 Income tax (59,009) (59,211) (202)
National insurance (2,256) (2,257) (1)
Share dividends (after tax) 75,000 75,000 0
Tax relief on pounds 15,000 pension 6,000 6,000 0
Tax relief from pounds 10,000 EIS invtmnt 2,000 2,000 0
Tax relief from pounds 10,000 VCT invtmnt 2,000 2,000 0
Mortgage repayments (31,514) (31,514) 0
Domestic fuel bills (945) (945) 0
Net income 141,276 141,073 (203)
Duty: Wine (728) (728) 0
Spirits (780) (780) 0
GAIN/(LOSS)
Car benefit 11,667 12,500
Fuel benefit 1,890 2,270
Assumptions:
Entrpreneur taking pounds 150,000 salary and pounds 100,000 dividends.
Company car costing pounds 50,000; 4,000cc; 5,000 business miles pa; fuel provided by company Domestic fuel pounds 900 + VAT. Mortgage pounds 450,000; interest rate 7.05%; interest only. Drinks: wine 2 bottles/wk at pounds 7 per bottle; spirits 1 bottle per week at pounds 15 per bottle. Relief on VCT and EIS investments given at 20%.
After mortgage, pension and fuel bills.
pounds 1998-99 1999-00
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments