It’s the start of a new tax year and with it are a fair few changes to your finances. Here’s a quick run through of the major things you need to know.
I’ve put some bullets below of the main points, but I’ve gone into more detail in this week’s podcast episode.
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Changes affecting your earnings
- Tax threshold increases
- Personal allowance up to £12,500 from £11,850
- Higher rate threshold up to £50000 from £46,350
- In Scotland the personal allowance is also rising to £12,500, but above that tax rates are different so check it out
- National Insurance thresholds also going up.
- You’ll now start paying 12% NI after you earn £8,632. But you pay it until you earn £50,024 (when it drops to 2%).
- Minimum wage aka the National Living Wage increases across all age groups
- Pension auto-enrolment levels to increase
- Employees 3% to 5%
- Employers 2% to 3%
Price rises
- Council tax
- BBC report increase of 4.5% in England on average
- It’s less in Scotland. Half increasing by 3% but some going for the cap of 4.79%.
- In Wales can go as high as 9.92%.
- TV licence up £4 a year (read more here)
- Energy cap increase – typically £117 a year added to variable bills (read more about the cap)
- Water bills up slightly – 2% on average
- Car tax up for most between £5 and £15
- Prescriptions up 20p to £9 in England – everywhere else gets it for free (read about how to pay less)
- Dental charges up to £22.70 (up £1.10)
- Stamps went up at the end of March by 3p each.
- a second class stamp is 61p
- a first class stamp is 70p