On the 29th October 2018, the Chancellor Philip Hammond delivered the Autumn Budget; the last budget before Brexit. As we head towards March 2019 many British citizens are now considering how they might change their personal finances in light of the changes outlined in the Budget.
Taxes and monetary changes
Tax freezes
As of April 2019 beer, cider and spirits duty tax will freeze for the following year. Petrol duty is also frozen for the ninth year in a row, saving the average driver £1,000 per year.
Tax increase
Wine duty will increase in line with RPI inflation, along with long-haul air passage duty.
Tax bands & National Insurance
The lowest NI band will be increasing from £8,424 to £8,362. This means an extra £24.96 take home for those that fall into this bracket.
The 12% NI band will now span from £8,632 to £50,024, having increased from £46,834.
The 2% NI band means individuals will pay 2% on everything over £50,024.
See below the income tax and NI bands from April 2019:
| Annual Income | National Insurance | Basic Tax | Higher Tax |
| £0 – £8,631 | N/A | N/A |
N/A |
| £8,632 – £12,500 | 12% on > £8,632 | ||
| £12,500 – £50,000 | 20% on > £12,500K | ||
| £50,000 – £100,000 | +2% on >£50K | 40% on > £50K |
Income tax
As of April 2019, the amount you can earn tax free will increase from £11,850 to £12,500. This means if you earn between £12,500 and £100,000 per annum you will be taking home an extra £130 per year. For those who earn £10,000 to £123,699, the personal allowance goes down by £1 for every £2 of income above the £100,000 threshold.
Capital Gains Tax
Capital gains tax will increase by £300 to £12,000.
National living wage increase
The national living wage will be increasing from £7.83 to £8.21 per hour for those aged 25 and over. However, all groups will be receiving a rise:
| Year | 25+ | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
| April 2018 (current rate) | £7.83 | £7.38 | £5.90 | £4.20 | £3.70 |
| April 2019 (new rate | £8.21 | £7.70 | £6.15 | £4.35 | £3.90 |
Brexit
An extra £500 million has been set aside for arrangements for leaving the European Union. If needed, the Spring Statement set for March 2019 may be upgraded to a full budget. Furthermore, a commemorative 50p coin will be released to mark the UK’s departure from the EU.
26-30 Railcard
Currently, those aged 16 to 25 can apply for a railcard and receive 30% off rail fares. A new 26-30-year-old railcard is set for release in late 2018 that will also grant 30% off rail tickets.
Plastic Packaging
In a bid to reduce the environmental impact of harmful plastic packaging a tax will be introduced. This tax will affect the production and import of plastic as of April 2022. Any plastic products in the UK that aren’t made up of at least 30% recycled materials will be taxed. The government hopes it will incentivise recycling.
Stamp duty
The chancellor revealed that stamp duty would be cut for first-time buyers of shared ownership homes worth £500,000 or under. This action is retrospective, so anyone who bought a house since the last Budget will benefit.
Help to Buy
The Help to Buy scheme was set to end in 2021. However, this time period has been lengthened until 2023.