Home Personal Finance 7 major money changes coming in from today as new tax year begins

7 major money changes coming in from today as new tax year begins

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The new tax year starts today, April 6th. This means some changes that may affect your finances.

The fiscal year runs from April 6th to April 5th of the following year. This means that thresholds, permissions, etc. will be reset today.

However, income tax and national insurance will remain frozen until 2028, a phenomenon known as the fiscal drag. The individual income tax allowance is now £12,570. mirror report.

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If you earn more than £12,570, you will now pay a basic income tax of 20%. For earnings over £50,270, it increases to 40%.

Today the 45% tax rate has been reduced from £150,000 to £125,140. The National Insurance rate is 12% above £12,570 and 2% on income above £50,270.

If tax thresholds were frozen as they are now, they would not increase at the same time, so as wages increase in line with inflation, workers would expect higher tax rates over time. Here are some of the other new rules starting today, according to Hargreaves Lansdown personal finance experts Sarah Coles and Helen Morrissey.

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