Budget 2012: Impact on family earning £55K

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case study 1

case study 1Chancellor George Osborne has released his Budget 2012 and this is an at-a-glance breakdown of how it could impact a typical family earning over £55,000 a year.

The example below is based on a couple in their mid 30s – the Smiths – both working in the public sector. They have two kids aged eight and four. The main variables to consider would be child benefit and pension tax relief.

 

2011/12

2012/13

2013/14

Joint income

£55,000

£55,000

£55,000

Joint deductions for income tax and NIC

-£12,876

-£12,532

-£12,092

Child benefit/ Tax credits (where applicable)

£1,752

£1,752

£1,752

Net income inc credits

£43,876

£44,220

£44,660

Better off

 

£344

£784

Source: PricewaterhouseCoopers

Other case studies:

Budget 2012: Impact on family earning £10K

Budget 2012: Impact on family earning £25K

Budget 2012: Impact on family earning £40K

Budget 2012: Impact on family earning £68K

Other impacts of the Budget 2012:

Budget 2012: Child benefit changes are softened

Budget 2012: Tax changes – will you benefit?

Budget 2012: Misery for millions of motorists

Budget 2012: Chancellor champions help for first-time buyers

Budget 2012: Case studies – meet the winners and losers