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Is the new financial year good news for you?

Happy New Year! Yes, I know it’s spring, but today marks the start of the new financial year, which takes place on 6 April each year – and with it come a raft of changes that could see more money back in your pocket.

Here are the major ones you need to know about.

Your savings will now earn tax-free interest

The new Personal Savings Allowance (PSA) gives everyone paid less than £43,000 a year a huge boost to their savings. Rather than the bank deducting 20% tax from any interest earned, you’ll now receive it all straight into your account.

You can make £1,000 each financial year with this tax-free allowance, though that reduces to £500 if you are a higher rate tax payer (i.e. get paid more than £43,000). Any interest earned over the PSA is taxed at your normal rate. Anyone who earns more than £150,000 a year won’t get the PSA.

You’ll keep more of your salary

The amount you can earn before you begin to pay Income Tax will rise from £10,600 to £11,000, giving you an extra £80 per year.

If you earn £43,000 or more, you’ll also take home more money. The Higher Tax rate threshold has jumped by £415, cutting tax payments by an extra £83 per year.

You’ll get more spare cash for renting your spare room

Every year you can now earn £7,500 from renting out your spare room. This is up from £4,250, but it’s per property rather than per person.

ISA money won’t be locked away once you invest it

Most ISAs will now have greater flexibility. Rule changes mean you can now withdraw money from your ISA and pay the same amount back in as long as the total balance at the end of the year is not more than £15,240. Do check that your ISA allows this though.

There’s another type of ISA

As well as the Help to Buy ISA that launched last autumn, there’s going to be an Innovative Finance ISA for people looking to invest in Peer-to-Peer lending. The Lifetime ISA announced in the Budget won’t be available until 2017.

New Living Wage boosts hourly income

If you’re 25 and over the minimum wage has been replaced by the Living Wage, set at £7.20 an hour. The Living Wage rate changes every April. The minimum wage still applies for under 25s, but that has gone up too

It’ll be more expensive to buy a second home

If you already own a property, you’ll have to pay additional Stamp Duty on any further homes you buy. An extra 3% will apply to the charges.

The new State Pension replaces the old system

It’s all change for how State Pensions are calculated – and this could make a big difference to men born after 6 April 1951 and women born after 6 April 1953.

What do you think?

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  • linet musanga / 2 May 2016

    i need aloan from u guys am asingle mum of three ineed to manage my business

  • John Teague / 1 May 2016

    It is very good serve

  • Sylvia Rowley / 26 April 2016

    Very good

  • Claire Docherty / 25 April 2016

    I'm wanting to borrow money
    I've three children my youngest is 17months old I'm bringing my kids up as a single mum in at times a do struggle. When I was young I got my self in a. Bit debt and now it's affecting evrything when I want to borrow I'm not that young silly girl now my kids have changed me and a would love someone to give me chance. So I could build my credit up so I could get to improve are home and life's

  • Silvia / 24 April 2016

    I want to borrow money

  • linda / 21 April 2016

    I cant afford to live my husband has left me staying in marbella with a younger model gives me no money I sorry wee have two sons who he doesn't pay for

  • m bull / 21 April 2016

    although it looks good interest rates are so low how does anyone make £1000 new pension good if right age not good if you are to old

  • diane kirk / 21 April 2016

    Hi a brilliant email, very informative with links to further information, simple and easy to follow. Good current subjects chosen to read at your leisure.

  • AMANDA GATES / 21 April 2016

    All of these improvements are helpful but can I ask the following question, as no-one appears to have appealed for agency workers. I once worked for 3 different agencies as a nurse/carer, however I was taxed heavily for having what the tax man said 3 jobs, yet some weeks all 3 agencies could not provide me with a basic 37.5 hours of work so while I was working less than 37 hours, I was still being taxed for having 3 jobs. Now the tax office is going digital isn't time we were taxed for the hours we worked not for the jobs we had. Many people have to work on agencies now in Britain as this fits with family life and or education if you are at college or University. Please help the agency worker tax office

  • MARY ANN D.CABAHUG / 21 April 2016

    PLS HELP ME KUNG TOO BA MY REWARD AQ SAINYO.HND PO AQ MARUNONG MAG ENGLIS PLS HELP ME..

  • Colin roderick Murray / 21 April 2016

    I think that poor people should get more, the rich less, and anyone earning more than £60000 should pay more in tax and not get bonus like mr markey of Family Assurance (1.16Million)

  • Teresa Skelding / 20 April 2016

    Feel cheated that I don't receive my government pension until I'm 65 despite over 40 years NI contributions. Caught in the age trap!

  • EMMANUEL CHIDI UWANDU / 20 April 2016

    Thank for your good infomations and inovations as regards to my PSA I say thank you so much for your good record keeping with hope now I can receive my cash into my account for on wards forward movement

  • Ana B. / 20 April 2016

    Yes, Mr Webb. Very good news for me.

    I will increase my salary thanks to the reduction of the in come tax, and will get some extra money from the tax free of my savings.

  • Neil wallace / 17 April 2016

    Sorry 20+per month

  • Neil wallace / 17 April 2016

    I work my butt off in the retail industry i only get 17600 a year fulltime and that includes lots of o/t 20hrs+ pw struggling as i get no other benefits i only benefit £80 a yr from this income tax its total bs why dont they get rid of tax for people like me its parhetic rich get richer and the poor get poorer

  • Ruth Taylor / 12 April 2016

    I keep being told I've been accepted to loans but no one's been in touch, I'm not happy