Budget 2012: Impact on family earning £68K

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impact on families

impact on familiesChancellor George Osborne has released his Budget 2012 and this is an at-a-glance breakdown of how it could impact a typical family with a joint income of over £68,000 a year.

The example below is based on a couple in their late 20s – the Jones – one is a high earner and one is earning under the £42,000 a year threshold. They both need to drive to work and the school run and have two kids aged two and three years old. The main variables to consider here are fuel duty and child benefit.

 

2011/12

2012/13

2013/14

Joint income

£68,000

£68,000

£68,000

Joint deduction for income tax and NIC

-£17,789

-£17,445

-£17,107

Child benefit/ Tax credits (where applicable)

£1,752

£1,752

£1,752

Net income inc credits

£51,963

£52,307

£52,645

Better off

 

£344

£682

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 £55K

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