As the new tax year starts today, millions of people are set to see their pay increase.
The money you can earn before paying any tax has changed! The personal tax allowance has changed from £11,500 to £11,850.
How much will I save?
Single workers who earn between £20,000 and £40,000 will get an extra £101. Those who earn a higher wage will also receive more cash. The point at which someone will start paying the higher level of tax has changed from £45,000 to £46,350. Nearly everyone will receive more cash due to this change – yay!
What about student loans?
Students now have to earn more before they start paying back their student loans. Where before, graduates in England and Wales who earn over £21,000 would start paying back their student loan, that amount has now increased to £25,000. So, graduates earning under £25,000 don’t have to start paying back their student loan until they pass that threshold.
The nine million people who receive auto-enrollment pensions will also see a rise! The contributions will rise from 1% to 3%, but on the bright side, employer contribution will rise from 1% to 2%, seeing an overall rise of 5% in total. Your pension could be boosted by £300 per year.
Almost everyone will see a rise in income during the 18/19 tax year due to these changes.