As you may be aware, the new tax year is now upon us – but there’s no need to panic! While it’s always a busy time of year for us, this year brings relatively few changes compared to previous years.
Will I be better off?
The majority of basic rate taxpayers should see a little more money in their pockets this year, with the personal tax allowance increasing from £11,500 to £11,850 and the threshold at which the higher tax rate becomes payable increasing from £45,001 to £46,350. However, increases in council tax and other services such as the TV license and household bills may well offset any gains.
Students will see the post-2012 student loan repayment threshold increase to £25,000. Those claiming benefits will likely see a real-terms decrease in the money they receive this year as the four-year benefit freeze continues.
What about savers?
The annual ISA allowance remains at £20,000 for this year, while the Junior ISA allowance will increase by £132 to £4,260. Last month Mark Carney, Governor of the Bank of England, gave signals that the Bank Base Rate may rise this year, perhaps as soon as May. This would be welcome news to savers who have seen interest rates at record lows for more than ten years, but potentially not-so welcome news for some borrowers. The Bank Base Rate last increased in November 2017.
What should I do now?
The end of the tax year is a common time for savings accounts to mature. Some people will choose to roll their savings into a new account, while others may withdraw their money.
On 6 April we’re launching a range of refreshed savings products, including the return of our popular Monthly Saver ISA account. Check back on 6 April to see our newest products and interest rates or call into one of our branches.