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New Tax Year Begins - What Changes Will Affect You?

New Tax Year Begins - What Changes Will Affect You?

Friday 6th April 2018 marks the start of the new tax year. Here is a rundown of changes made by the Government that may impact you.

 

The National Living Wage and National Minimum Wage is going up.

Those over the age of 25 and not in the first year of apprenticeship are legally entitled to at least the National Living Wage, which is rising to £7.83 an hour from today. There is also an increase in the National Minimum Wage for those under the age of 25.

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2018 £7.83 £7.38 £5.90 £4.20 £3.70

Source: gov.uk

 

The Personal Allowance is going up

This is the amount of income you can earn before you have to pay tax on it. From today, you won't pay tax on income if you earn less than £11,850 per annum.

 

The repayment threshold for tuition fee loans is going up 

English and Welsh students who took out loans from 2012 will now only have to start repaying their loan when they are earning £25,000 per year, rather than £21,000, as described here.

 

New Sugar Tax

A new sugar tax comes into the UK today, designed to cut the consumption of sugar-heavy drinks. Manufacturers of soft drinks will now be taxed drinks they import or produce by volume. Drinks will fall into two different tax bands, including one for total sugar content over 5g per 100ml, and another band for drinks with more than 8g of sugar in every 100ml. While the tax does not directly impact consumers, it is likely that manufacturers may increase prices of drinks in order to fund the new tax payments.

 

The State Pension is going up by 3%

Those in retirement will receive an extra £3.65 a week on their State Pension.

 

Fuel duty remains frozen

Fuel duty will remain at 57.95 pence per litre.

 

Do you think you will benefit from these changes? Tweet and comment your thoughts @speakerpolitics.

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