When the new tax year starts in April, changes in the tax system will put more money in your pocket and help you keep more of your wages. Here’s information about how you might benefit.
Tax changes which come into effect in April will mean 32 million people in the UK see their income tax bill cut compared to 2015-16. This summary lets you know where you can find more information about each of the tax changes.
The National Living Wage is going up to £8.21 an hour
If you are aged 25 and over, and not in your first year of an apprenticeship, you are legally entitled to at least the National Living Wage. Those under 25 and apprentices also benefit from rises in the Minimum Wage. The National Living Wage and National Minimum Wage rates apply across the UK.
The Personal Allowance is going up to £12,500
You don’t have to pay income tax on the income you earn below this amount. As a result of the change, a typical basic-rate taxpayer will take home £130 more than in 2018-19.
Fuel duty will remain frozen for the ninth year in a row
It will remain at 57.95 pence per litre across the UK. Fuel duty has been frozen for the ninth successive year, saving the average car driver £1,000.
Small retailers will get business rates relief
Small retailers will get one third off their business rates bills, this is part of more than £13 billion of rates relief since 2016.
The Universal Credit work allowance is increasing by an extra £1,000 per year.
From April, working parents and disabled people will be able to earn an extra £1,000 a year before their Universal Credit starts to reduce. This change will see 2.4 million families keep up to an extra £630 per year of what they earn.
New Enterprise Allowance has been extended
The New Enterprise Allowance provides mentoring, support and funding for benefit claimants to get their business ideas off the ground. Over 120,000 businesses have been launched though the NEA since 2011 and from April funding will continue for another 2 years with 30,000 new mentoring places available.
Access to Work is increasing by an extra £2,000 per year
From 1 April 2019 people will be able to claim up to £59,200 annually through the Access to Work scheme to help pay for additional support that they may need in the workplace. This can include workplace adaptations, assistive technology, transport and interpreters.
