Easy to understand Autumn Statement 2014

It’s not just the Budget where the Government tells us their plans and policies for the economy – there’s also the ‘Autumn Statement’. I’ve cut it down to the three things that will probably affect you.

Lots of it was about business and things like improving roads, but some will effect many people.

Here are the three things that could make a difference to you:

1. You’ll take home more money in your wages

Not a pay rise. Instead you’ll get taxed a little less on parts of your salary from April 6th next year.

Earn between £10,600 and £41,865 and you’ll take home an extra £120 each year.

Earn over £42,385? You’ll be £224 better off.

If you earn in between those two figures, you’ll get between £120 and £224, depending on your actual salary.

If you’re confused about how much tax and other things get deducted from your wages, take a look at my Payslips Explained article.

2. You’ll pay less tax when you buy a house

When you buy a house you get charged Stamp Duty. Until yesterday you paid a percentage on the whole value, which rose as the selling price also rose.

Now it’s a tiered system which means you pay a different percentage on different sections.

Any house that sells for under £937,000 will see you’ll pay less or the same. Here are some of the differences:

– £150,000 property buyer pays £1,000 less
– £210,000 (average first time property) pays £400 less
– £275,000 (average UK house price) pays £4,500 less
– £510,000 (average London house price) pays £4,900 less

This could mean that house prices go up though, so your savings might not be too big in the end.

Flying with kids just got cheaper

Everyone gets charged a “passenger duty” when they fly.

It’s going to be scrapped for under 12s from May 2015, and under 16s will also be exempt from March 2016.

It’s calculated by distance, so it works out like this:

– Fly less than 2,000 miles save £13
– Fly more than 2,001 miles save £71

Read about how to find cheap flights

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