New financial year: The 25 changes to come this month
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The financial year has started anew today, resetting the 13-month calendar once more. The period covers corporation tax and Government financial statements and will continue until April 30, 2022. During the first month alone, ministers have introduced new policies that could impact people ahead of, and following, the April 6 personal tax year.
Tax allowances and thresholds
Personal allowance will rise to £12,570 on April 6, and the starting point for higher earners will jump to £50,000.
Council tax rates
Council tax rates will increase by up to five percent across most households.
Driving theory, motorcycle and LGV tests may start from April 12, followed by tests on April 22.
Vehicle Excise Duty (VED) will see people have to pay more for car upkeep depending on their car’s CO2 emissions.
A Government-backed scheme will compensate banks or building societies if someone cannot meet mortgage payments.
Family leave and maternity leave
Family benefits, including shared parental pay, paternity, maternity and adoption, will increase to £151.97 from April.
Universal Credit advances
Universal Credit advance payment periods will increase from 12 to 24 months.
Universal Credit boost
Universal Credit will rise by roughly £1, on top of the £20 Covid uplift.
Pension Credit, whether basic or new, will also rise, giving claimants hundreds more per year.
Personal Independence Payment (PIP)
PIP daily living and nobility payments will rise from £89.15 to £89.90 and £62.25 to £62.55, respectively, with slightly more for enhanced claimants.
In a significant financial boost for businesses, non-essential retail can open again from April 12.
Prescription costs will rise to £9.35 from today, while three-month PPC’s increase by 60p and 12-month PPC’s increase by £2.20.
TV license fees
Annual TV license fees will rise by £1.50 from £157.50 to £159 starting today.
Disability Living Allowance
Each level of Disability Living Allowance will rise in the new financial year, to £23.70 on the lowest rung, £60 on the middle and £89.60 on the highest.
Working tax credit
People can get a lump sum of working tax credit amounting to £500 on April 23.
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Houses around the country face another £100 in energy costs per year due to new energy caps.
Statutory sick pay
SSP payments will rise to £96.35 per week during the next financial year.
Minimum wages rise today by 2.2 percent to £8.91 per hour, and the highest rate will include workers aged 23 and over.
Help to buy
Help to buy has now ended, meaning people cannot buy new-build homes with a five percent deposit, replaced by a scheme strictly for first-time buyers.
With the new tax year, couples can claim Marriage Allowance from 2018 at the earliest.
Child benefit amounts will increase to £21.15 for the first child from April 12 and £14 per week for subsequent children.
Employment Support Allowance
ESA will change for both under and over-25s from April to £59.20 and £74.70 respectively.
Under 25s can claim £59.20 for their housing benefit this month, while over-25s can claim £74.70.
Benefit in Kind
The Government scrapped BiK rates last year, but they will return this month, with drivers footing annual bills up to £390.
State pension on the new and basic rates will both receive a 2.5 percent boost, £179.60 for the new rate and £137.60 for basic payments.
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