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New tax year brings rate changes New tax year brings rate changes
(about 18 hours later)
Monday is the official start of the new tax year, which means various changes in taxation and benefits are made.Monday is the official start of the new tax year, which means various changes in taxation and benefits are made.
Pensioners will benefit from the basic state pension rising by 5%, based on the retail prices index (RPI) from last September. RPI is currently zero.Pensioners will benefit from the basic state pension rising by 5%, based on the retail prices index (RPI) from last September. RPI is currently zero.
The news is not as good for those earning over £40,000, with the amount of earnings on which national insurance is payable at 11% rising by £3,475.The news is not as good for those earning over £40,000, with the amount of earnings on which national insurance is payable at 11% rising by £3,475.
It is unusual for the Budget to be delivered after this date.It is unusual for the Budget to be delivered after this date.
Most government departments introduce changes on either 6 April or 1 October, which are known as Common Commencement Dates.Most government departments introduce changes on either 6 April or 1 October, which are known as Common Commencement Dates.
This year, the budget is being delivered after the start of the tax year on 22 April.This year, the budget is being delivered after the start of the tax year on 22 April.
Usually it would be before 6 April so that changes in rates and allowances could be introduced on that date.Usually it would be before 6 April so that changes in rates and allowances could be introduced on that date.
Many people are taking the choice of budget date as an indication that there will not be major changes to income tax or national insurance in the budget.Many people are taking the choice of budget date as an indication that there will not be major changes to income tax or national insurance in the budget.
These are some of the changes coming into force on Monday. These are some of the changes coming into force on Monday:
  • Allowance before any income tax is paid rises £440 to £6,475
  • National Insurance will be payable at 11% on the first £43,875 and 1% after that, up from £40,400
  • Basic state pension rises from £90.70 a week to £95.25
  • Child tax credit rises from £2,085 to £2,235
  • Pension credit will rise from £124 to £130 a week for individuals and from £189 to £198 for couples
  • The threshold before inheritance tax must be paid rises from £312,000 to £325,000
  • Parents of children under 16 get the right to request flexible working, which must be considered by their employer
  • Allowance before any income tax is paid rises £440 to £6,475
  • National Insurance will be payable at 11% on the first £43,875 and 1% after that, up from £40,400
  • Basic state pension rises from £90.70 a week to £95.25
  • Child tax credit rises from £2,085 to £2,235
  • Pension credit will rise from £124 to £130 a week for individuals and from £189 to £198 for couples
  • The threshold before inheritance tax must be paid rises from £312,000 to £325,000
  • Parents of children under 16 get the right to request flexible working, which must be considered by their employer.