Happy New Year
The 6th of April marked the first day of the financial year. This brings a few changes to individuals and businesses.
The Personal Allowance
The personal allowance (the amount you can earn before paying Income Tax) has increased from £11850 to £12500. This will lead to a small reduction in tax. For higher rate tax payers the allowance will increase from £46,350 to £50,000.
The National Minimum Wage
The national minimum wage has changed on the 1st of April 19.
- For 25 years and older the minimum wage has changed from £7.83 to £8.21
- For 21-24 years the minimum wage has changed from £7.38 to £7.70
- For 18-20 years the minimum wage has changed from £5.90 to £6.15
- For under 18 year the minimum wage has changed from £4.20 to £4.35
For an Apprentice the minimum wage has change from £3.70 to £3.90
The earnings threshold has also increased for paying back students loans.
- Plan 1 loans will rise from £18,330 to £18,935.
- Plan 2 loans will rise from £25,000 to £25,725.