Budget 2012: How will it affect you?

Budget 2012. Peterborough Evening Telegraph news
Budget 2012. Peterborough Evening Telegraph news
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Wednesday, 1.30pm: All the details from Chancellor George Osborne’s Budget 2012 and how it will affect Peterborough taxpayers can be found here.

Mr Osborne announced his Budget for 2012 in the House of Commons on Wednesday afternoon. Some of the key points:

• The personal tax allowance will rise by £1,100 from April 2013, meaning workers won’t have to pay any tax on the first £9,205 they earn. It will go up to £8,105 next month.

• Child benefits will be gradually be withdrawn for parents earning more than £50,000, a reduction of one per cent for every £100 earned above £50,000, so it will have gone completely by the time they earn £60,000. However, those families with two workers earning less than £50,000 will still be able to claim the benefit, even though together they earn more than £50,000.

• Fuel duty rise of 3 per cent planned for next month stays as it is.

• Duty on alcohol not changing for now, but cost of cigarettes will rise at 5 per cent above inflation - that’s 37p extra a pack from 6pm tonight.

• Corporation Tax to be cut from 26 per cent to 24 per cent from next month. It will be cut further to 22 per cent next April.

• Taxpayers will receive breakdowns of how much tax they are paying and where it’s being spent from 2014.

• Simplified tax returns for smaller companies with turnovers of up to £77,000 will see them taxed on money going through the business, rather than the complicated methods used to calculate tax for much larger firms.

• £50 million set aside to install superfast broadband in smaller UK cities. Peterborough City Council has set aside £3 million over next two years to install superfast broadband.

• £100 million will be spent improving accomodation for Armed Forces personnel, while service families will receive 100 per cent council tax relief and welfare to those families will be doubled during deployment.

Related links:

Budget 2012 at a glance: George Osborne’s key points - bbc.co.uk

Full details of the Budget 2012 - www.hm-treasury.gov.uk

Budget 2012: how your taxes are spent - interactive - guardian.co.uk

Full reaction see Thursday’s ET.