The Impact of the 2013 Budget: Charles Bushby

MANAGEMENT CONSULTANT AT A MAJOR ACCOUNTING FIRM, 26

After two years in performance improvement, Charles earns around £30,000. He rents in west London – though he has considered buying a flat. He commutes via public transport. He saves for a pension through his firm’s generous matching scheme, but he still knows how to enjoy himself – he is a social drinker. He’s a non-smoker and does not have any children.

BDO’S BUDGET TEAM SAYS:

Assuming Charles doesn’t have any other income, the hikes in the personal allowance will add £24 per month to his pocket in 2013-14 and a further £9 per month in 2014-15, together totalling £396 per year. Depending on his choice of tipple, he could either benefit from the 1p cut in the duty on beer, or be clobbered by the 10p hike in wine duty or the 38p jump in spirits duty. Considering his income, it’s unlikely that the incoming cut in the limit in how much he can contribute to a pension – from £50,000 to £40,000 – without being taxed twice will affect him.