Within the Budget statement on 3rd March 2021, Chancellor Rishi Sunak set out the government’s tax and spending plans for the year ahead to support the long-term economic recovery. Due to our continuous development, we are pleased to confirm that the relevant changes within the Budget are now included within FinCalc.
Although there will be no changes to the rate of income tax and national insurance, the Personal Allowance and Higher rate income tax threshold will be frozen from April 2021. There was also a very significant freeze to the Lifetime Allowance threshold. This will remain at its current level until April 2026.
The freeze on Tax Bands and Lifetime Allowance may have an impact on your clients over the next few years and this in turn could affect their current and future financial objectives.
We want you to be able to fully prepare your clients for these changes as their cashflow modelling should include up to date and reliable information. The confirmed 2021/22 tax rates along with the freeze on these until 2026 have now been programmed into both the Cashflow Modeller and the Income tax calculator.
We have also frozen the assumed increases for the Lifetime Allowance threshold until 2026. Therefore, if your clients are coming up to retirement you can count on our calculations to show the impact any tax charges your clients may face due to this Budget statement.