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New financial year - will changes make you better off?

The new financial year started on Monday 6 April, and with it came a host of changes.

Here are the key rule changes that could affect you and your money.

If you’re working

The threshold at which you’ll start to pay income tax will rise by £600 to £10,600. This means most of us will take home an extra £120 a year.

The personal allowance threshold for higher rate taxpayers will also rise from £41,865 to £42,385. As a result, less people will have to pay 40% in tax on their earnings, saving up to £104 a year.

Under 21s no longer need to pay National Insurance contributions, meaning they’ll have more money to take home in their pay packet.

If you’re married

From April 2015, married couples and those in civil partnerships will be able to transfer £1,060 of their personal allowance – the amount you earn before you must pay tax. You must have an annual income of less than £10,600 and your spouse or civil partner that you’re transferring part of your allowance to must be a basic rate tax payer (earning less than £42,385). This transfer is worth an extra £212. You will need to register

Another change means the ISA (Individual Savings Account) of someone who dies can now be transferred to their spouse or civil partner’s ISA. The surviving partner’s allowance would not be affected and any savings or investments would maintain its tax free status.

 

If you have savings

If you live in the UK and your total income is less than £15,600 you may be eligible to receive your bank or building society interest without tax taken off.  Checking if you are eligible is simple and straightforward through the new online calculator

The annual ISA limit goes up to £15,240. Junior ISAs and Child Trust Funds are also rising, to £4,080.

Anyone with a Child Trust Fund will be able to transfer it to a Junior ISA, where there could be better interest rates.

If you have a pension or are about to retire

These are the biggest changes we have seen to retirement savings in a long time, completely changing how people may access and use their pension pots. For more information head over to our pensions and retirement pages.  

 

What do you think?

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  • Claire / 23 May 2015

    I am single, live on my own, work full time. I have no dependants other than my cats and a Guinea pig. I am paying off debt and have no savings. I can get no working tax credit or any other benefits. When my pets are ill and need to visit the vets, I have to pay. Is there any monetary help I can get? If I had chosen to have children rather than animals I would be in a better position I feel. Also, if I didn't work, I would not have to pay vets bills. People I know on job seekers benefit have more disposable income than myself. I am thankful for the increase in personal allowance- I hope to be able to start saving soon, oh no, wait, I need that money for the rise in my travelling expenses to get to work. I apologise if this isn't really relevant to your post. I guess I'm just fed up today!

  • james cRISP / 20 April 2015

    With regard to the transfer of £1060 personal allowance I believe that my wife and I qualify as her total income is less than £10600 and mine is less than £42385. Which of us needs to register? Is it with HMRC?
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    ADMIN: Hello James, you can register here https://www.gov.uk/marriage-allowance

  • Geoff Tillman / 20 April 2015

    Amazing coincidence that Claire Brookes comment 1 hour ago makes exactly the point I was about to make. To underline Claire's point, MA states "if you have an income of less than £10,600, including some benefits, you can now earn up to £5000 in interest from savings and investments tax-free", whereas on the Gov. website calculator your allowances total £15,600 (i.e. £10,600 + £5000), This is a significant difference, I think the wording needs to be changed urgently as people will think their income needs to be under £10,600 before they can claim interest tax-free.(not so).
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    ADMIN: Thanks, we've amended this

  • Mr Ken gill / 20 April 2015

    A taxing question to which I have been unable to get a reply maybe it is also not within your remit, I would however appreciate any thoughts you may have on the subject.
    I am going on 76yrs old and receive a War disablement Pension, Housing Benefit,Attendance Allowance,Service Pension and Senior Citizen Pension. I still however still pay income tax is this correct, I would be grateful for some advice. Impossible to contact Tax Office could not find email address which is all I use as I am profoundly deaf.
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    ADMIN: Hello, if you scroll to the bottom of the page on our main website (https://www.moneyadviceservice.org.uk) you'll see an option for a live webchat with one of our advisors.

  • Claire Brooks / 20 April 2015

    Please could you clarify about the £10,600 with regard to savings that could be tax free up to £5000. This is worded differently from the government website that looks at the total income gross of £15,600 including your tax on your savings as part of that total. My pension takes me just over the £10,600 but if I add my gross interest from my savings I am still under £15600. I look forward to your response.
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    ADMIN: Thanks, we've amended this in the article above

  • Paul / 20 April 2015

    The worst policy of the coalition government has been to replace DLA with PIP. Hence penalising disabled people with permanent disability. Why should we suffer for the sake of a few cheats? I will not be voting Conservatives or Liberals,

  • Ali Bayhan / 19 April 2015

    I want to use credit.

  • donna / 19 April 2015

    Why do working class and middle class people in England vote conservative it beggers believe

  • Andrew Maxwell / 19 April 2015

    It's a step in the right direction for the hard working low paid but I think the government could do a bit more

  • yah KOUASSI / 19 April 2015

    Nice but I am not working. Good news to know.

  • denis hawkes / 19 April 2015

    thanks for the info

  • Celia / 19 April 2015

    the rich are still getting richer one law for them in doing nothing if your a low paid working you still have to work harder to get it I wont be voting conservative

  • Josephine Rignall / 19 April 2015

    i think i just sent you a comment,i am unemployed and disabled so at the moment taxs do not effect me.

  • Josephine Rignall / 19 April 2015

    i am disabled and unemployed so i dont have a wage and in Oct.my disablity benfit stops so some how i have to look for work,i use a weelchair and cannot walk far and am visually impared so how the hell do i get a job,i do not have a social live and have problems sleeping.I dont really have savings well £142 if you call it savings.

  • J L Pocock / 19 April 2015

    Interesting but, as a pensioner my tax coding has dropped thus paying more tax, SO, they are giving on one hand and TAKING with the other hand ????

  • Marina / 19 April 2015

    Very good change! useful info!