Tax year changes you should be aware of

The new tax year brings a number of changes which experts have predicted will make the average UK household significantly worse off.

National money education charity Credit Action, summarise the headline figures:

  • Personal allowance increases to £7,475
  • Higher rate income tax threshold drops to £42,475 meaning 750,000 people will start paying income tax at 40%
  • Employee national insurance contributions will increase to 12% from 11%
  • Child benefit will be frozen for 3 years

Due to these tax increases and benefits cuts in April, households could be up to £200 worse off.

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