April marks a significant period for financial matters each year. As the tax year draws to a close, various personal allowances, including ISA limits and pension contributions, are due to reset soon. However, this time of the year also brings less favorable news as many bills are set to increase, impacting households with a range of cost hikes.
In April, millions of employees can expect an increase in the minimum wage. For individuals aged 21 and above, the hourly minimum wage will rise from £12.21 to £12.71, while those aged 18 to 20 will see their rate climb from £10 to £10.85 per hour. Younger workers and apprentices will also experience a rise in their minimum wage rates.
Council tax bills are slated to go up in April, with most local authorities in England implementing a maximum 5% increase. Any council seeking larger hikes must undergo a referendum process. The average band D council tax bill in England for the upcoming year is estimated at £2,392.
Starting from April, the TV license fee will see an increase from £174.50 to £180. A TV license is mandatory for watching or recording live TV or accessing content on BBC iPlayer. Notably, no TV license is required for streaming services if viewers exclusively watch non-live content.
In England and Wales, water bills are due to rise by an average of £33 annually, representing a 5.4% increase. Regulators have approved a 36% bill increment over the next five years, until 2030.
Vehicle owners whose cars were registered post-April 2017 will see an increase in the standard road tax rate from £195 to £200. Pre-April 2017 vehicle registrations will also face higher tax rates, including an increase in the first-year “showroom” tax.
From April onwards, most mobile and broadband providers will raise bills by £1 to £4 per month, potentially adding up to an additional £48 annually for consumers. Regulations now prohibit telecom companies from tying mid-contract price increases to inflation, requiring them to clearly disclose the exact monetary increment to customers.
NHS dental charges in England are set to rise by 1.7% effective April 1. Costs for routine check-ups and treatments under Band 1 and Band 2 care will see a modest increase, while charges for Band 3 services, such as dentures, will also go up.
Air Passenger Duty, a tax levied on all flights, will surge by 15% starting April 1. The increased rates will apply to different flight distances, with economy short-haul flights seeing a £2 rise, medium-haul flights facing a £12 increase, and long-haul flights encountering a £12 hike.
Ofgem’s energy price cap for typical dual fuel households is decreasing from £1,758 to £1,641 in April. However, experts anticipate a significant rise in energy prices later in the year due to heightened gas costs stemming from conflicts in the Middle East.
The current tax year concludes on April 5, marking the deadline for utilizing existing tax allowances before they reset. Individuals can maximize benefits such as the £20,000 ISA allowance and the £60,000 pension contribution limit before the new tax year commences on April 6.
As of April 6, sole traders and landlords earning over £50,000 annually must adhere to the Making Tax Digital initiative, requiring them to maintain digital records and submit tax updates quarterly using compatible software.
Changes to agricultural and business property reliefs for Inheritance Tax will take effect on April 6, introducing a £2.5 million cap before the tax becomes applicable. Assets exceeding this threshold will receive a 50% tax relief, while the standard Inheritance Tax rate remains at 40%.
From April 6, the Dividend Tax rate will increase to 10.75% for basic rate taxpayers and 35.75% for higher rate taxpayers. Dividends represent profits distributed by companies to shareholders.
The Capital Gains Tax rate for Business Asset Disposal Relief and Investors’ Relief is rising from 14% to 18% starting April 6, while the £1 million lifetime limit for these reliefs remains unchanged. This adjustment will lead to higher tax liabilities for entrepreneurs and investors upon qualifying business asset sales.
From April 6, individuals working from home will no longer be eligible for tax relief on additional household costs, such as gas and electricity. The UK’s work from home allowance stands at a fixed rate of £6 per week.
Welfare payments, including Child Benefit and Personal Independence Allowance, are set to increase by 3.8% in April. Notably, the basic standard allowance for Universal Credit will see a higher 6.2% increment, although the health component for new claimants will be reduced. Additionally, the state pension will receive a 4.8% raise under the triple lock guarantee.
Effective April 6