Tax change calculator: see how much you will save

Tax changes

Millions of workers are to pay less tax following the Chancellor’s mini budget.

The basic rate of income tax is to be cut by one penny from 20% to 19% and will be introduced in April 2023 – one year earlier than planned.

The Chancellor also announced that the 45% top rate of tax will be abolished.

Mini-budget – latest updates

This is in addition to the reversal of the 1.25% hike in National Insurance.

If you earn up to £100,000 per year, you can use our tool below to see how the changes affect you:

Sky News has asked the Treasury to confirm whether the rules will be changed for those who earn over £100,000 and we are waiting for a response. At the moment your personal allowance goes down by £1 for every £2 that your income is above £100,000. Our calculator doesn’t not reflect this.

The mini-budget, called the “growth plan” by the government, comes as the UK faces a cost of living crisis, soaring inflation and climbing interest rates.

Leave a Reply

Your email address will not be published.