Money Saving Expert Martin Lewis has issued a message to anyone who is earning less than £50,000 per year. At a time where bills are skyrocketing and the poorest are being the worst hit, it's a much needed boost.
Martin's announcement comes after yesterday's 'mini budget'. On Friday, Chancellor Kwasi Kwarteng unveiled a "new growth plan" for the UK, in which he outlined a number of changes which seem more beneficial to rich households.
The budget has proven controversial as millions of people in the UK struggle in a cost of living crisis, with accusations the tax cuts will only benefit the top 1% of earners. However, according to Martin it's not all doom and gloom.
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The finance journalist has composed an "explainer" video to help explain how exactly people will be affected by Stamp Duty, National Insurance and Income Tax. Part of Mr Kwarteng's "new growth plan" was to cut stamp duty, with the nil rate band doubling from £125,000 to £250,000.
This means 200,000 more people every year will be able to buy a home without paying any stamp duty at all - and the standard buyer in England will save £2,500, according to Gov.uk. Mr Lewis said many fans have asked him if they will still get the new rates if they have exchanged homes but not "completed". In a tweet, he replied: "In general yes, stamp duty is crystallised at completion (though there can be some exceptions - check with your solicitor)."
Anyone buying a house worth between £250,000 and £900,000 will pay a 5% stamp duty, he said. Using a £300,000 property as an example, Mr Lewis said: "You pay no stamp duty on the first £250,000, you pay 5% on the remaining £50,000, which is £2,500. Yesterday, you would have paid £5,000."
He also said first time buyers purchasing a property worth up to £650,000 will not pay any stamp duty on the first £425,000 - compared with £300,000 previously.
On income tax, he said, the basic rate has dropped to 19% (from 20%). People currently start paying income tax when their earnings reach £12,570, though this may change when the budget is announced next year, Mr Lewis said.
This means anyone earning this amount or more will have more take home pay. Though, he added: "For anyone earning £50,000 and over, you don't really get any more gain. The gain is really on the income between £12,570 and £50,000".
The Government also announced that the National Insurance cut for millions of Brits will take effect on November 6. Mr Kwarteng confirmed that the NI hike imposed by his predecessor Rishi Sunak in April was being reversed within weeks.
The Government will lower National Insurance from 13.25% back down to 12%, where it was before a Tory hike in April. The change had been expected next Spring but was brought forward. It is said 28 million people across the UK will keep an extra £330 a year each, on average, in 2023-24.
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