The changes being made on taxes & benefits next month!
As you all probably know, the new tax year begins this week. This means that there will be some big changes to benefits and taxes coming into practice.
For those of you wondering what will be happening to certain aspects of your taxes and benefits, I’ve made a note of all the big changes to expect for 2016/17.
Firstly, the amount we can earn before paying any Income Tax, will be rising from £10,600 to £11,000. From April, there will be no extra allowance for taxpayers aged over State Pension age.
The higher rate tax threshold will also be rising from £42,385 to £43,000.
Find out if it would be worthwhile for you to take out Income Protection Insurance.
Have you ever thought about taking out Marriage Allowance?
Well now may be a good time because it is rising from £1,060 to £1,100. This is intended to work as a good tax break for married couples.
The Living wage for employees who are aged 25 or over will rise to £7.20 per hour.
Personal Savings Allowance
There will be changes to the personal savings allowance from April. The first £1,000 of savings interest will be tax-free for basic rate tax payers, and £500 will be tax-free for higher rate payers.
Capital Gains Tax
The CGT rate for basic rate taxpayers will fall from 20% to 10%, while the rate for higher rate taxpayers will fall from 28% to 18%.
New state pension rules will be launching from 6th April.The change will impact women born on or after 6th April 1953 and men born on or after 6th April 1951.
The basic State Pension will rise by 2.9% from £115.95 to £119.30 a week.
Universal credit will be one of this biggest benefit changes. You can read full details on this here.
The childcare costs element of Universal Credit is changing. Currently it pays 70% of your registered childcare costs up to a monthly limit of £532.29 a month for one child or £912.50 for two or more children.
From 11th April 2016 this will rise so that you will be able to claim back up to 85% of the childcare costs you pay up to a monthly limit of £646.35 for one child or £1,108.04 for two or more children.