The new tax year starts on 6 April 2018. Many changes take effect on the day which will put more money in your pocket and help you keep more of your hard-earned wages.
The National Living Wage is going up to £7.83 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 Personal Allowance is going up to £11,850
You don’t have to pay tax on the income you earn below this amount, (there are exceptions for high earners). As a result of the change, a typical basic-rate taxpayer will take home £1,075 more than in 2010-11.
The State Pension will go up by 3%
That’s a cash increase of £3.65 a week for those in retirement.
Fuel duty will remain frozen for the eighth year in a row
It will remain at 57.95 pence per litre. This will save households and businesses an extra £850 million a year in total – or £160 for the average driver.
The threshold at which graduates begin to pay back their student loan will go up to £25,000
The threshold will continue to rise in line with changes to average earnings, to help those starting out in their careers.