Now’s a good time to make sure your fully prepared for the financial year ahead. To make it easy we’ve summarised the key dates and facts and figures below.
National Living Wage (for age 23+) rises from £8.91 to £9.50
National Minimum Wage rises to £9.18 (for 21-22-year olds), £6.83 (for 18-20-year olds), £4.81 (for 16-17-year olds) and £4.81 (for apprentices under 19 or in the first year of their apprenticeship).
Council tax bills rise by up to 2.99% (including a 1% social care precept) although there may be some regional variations.
The Energy Price Cap increases by 54% as announced by Ofgem in February. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year. Prepayment customers will see an increase of £708 from £1,309 to £2,017.
Households in Council Tax bands A-D in England will receive £150 Energy Bills Rebate on their council tax bill to help protect them from rising energy costs. Discretionary funding will also be provided to support those in Council Tax bands E-H or those on low incomes who don’t pay council tax.
Reduced VAT rate of 12.5% on suppliers of hospitality, holiday accommodation and attractions, reverts to the standard rate of 20%.
End of the 2021/22 tax year. Have you used all your allowances?
Start of the 2022/23 tax year
ISA allowance remains at £20,000 (if it’s a cash ISA, stocks and shares ISA or innovative finance ISA) and £4,000 (for a lifetime ISA)
Junior ISA allowance remains at £9,000 (for a cash JISA, stocks and shares JISA or a combination of the two)
National insurance contributions paid by workers increases by 1.25%.
State Pension and benefit rates rise by 3.1% in line with the Consumer Price Index. This means the basic State Pension increases to £141.85 per week and the full rate of new State Pension increases to £185.15.
Standard Lifetime allowance for tax free pension saving remains at £1,073,100 until the 2025-26 tax year.
Personal tax allowance remains at £12,570. The basic rate threshold remains at £37,700 and higher rate at £50,270.
Working Tax Credit and Child Tax Credit claims for 2021/22 must be confirmed and renewed for 2022/23 if required.
Deadline for second payment on account for 2021/22 for those that pay self-assessed income tax.
All domestic electricity customers will receive a £200 discount on their energy bill from October. However, this discount will be automatically recovered from people’s bills in equal £40 instalments over the next 5 years, beginning in 2023.
Old £20 and £50 notes can no longer be used after 30 September. Although some banks and the Post Office may still allow withdrawn notes to be paid into customers accounts.
Paper income tax self-assessment deadline for 2021/22 returns to be with HMRC.
The government scheme that guaranteed 95% mortgages with selected lenders ends. This scheme was launched in April 2021 to help first time buyers after lockdown.
Your financial plan could be impacted by these key dates. Talk to us for advice.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.