April marks a significant period for financial matters. As the tax year draws to a close, various personal allowances, including ISA limits and pension contributions, are on the verge of resetting. However, households face the downside of rising expenses as numerous bills are set to increase. Here is a comprehensive roundup of the upcoming changes.
Starting in April, the minimum wage will see an increase for millions of workers. Individuals aged 21 and over will witness a rise from £12.21 per hour to £12.71 per hour, while those between 18 and 20 will experience an increment from £10 per hour to £10.85 per hour. For individuals under 18 or apprentices, the minimum wage will climb from £7.55 per hour to £8 per hour.
Council tax bills in England are slated to surge in April, with most local authorities opting for the maximum 5% hike. Any council seeking larger increases must undergo a referendum. A few councils have been granted permission for more substantial raises. The average band D council tax bill for England in 2026/27 is anticipated to reach £2,392.
From April, the TV licence fee will jump from £174.50 to £180. A TV licence is mandatory for watching or recording live TV or accessing content on BBC iPlayer. However, for other streaming platforms, a TV licence is unnecessary if only non-live content is consumed.
In England and Wales, water bills are set to increase by an average of £33 per year, equivalent to a 5.4% uptick from April. Ofwat has approved a 36% bill hike for water companies in both regions until 2030.
For vehicles registered post-April 2017, the standard road tax rate will rise from £195 to £200. Pre-April 2017 registered vehicles will also witness an upsurge in car tax rates, along with an increase in the first-year “showroom” tax.
Majority of mobile and broadband providers plan to raise monthly bills by £1 to £4 from April, potentially adding up to £48 annually. To comply with regulations, telecom companies must inform customers in exact monetary terms about any mid-contract price adjustments instead of tying them to inflation.
NHS dental charges in England will escalate by 1.7% from April 1. Costs for routine check-ups and Band 1 services will climb from £27.40 to £27.90, while Band 2 services, covering fillings and extractions, will see an increase from £75.30 to £76.60. The cost of dentures under Band 3 will rise from £326.70 to £332.10.
Air Passenger Duty, a tax levied on all flights, is scheduled to rise by 15% on April 1. The increment translates to a £2 hike for economy short-haul flights, taking the rate from £13 to £15. Medium-haul flights spanning 2,001 to 5,500 miles will see an increase from £90 to £102, while long-haul flights will incur a rise from £94 to £106.
The Ofgem energy price cap is decreasing from £1,758 to £1,641 for typical dual fuel households from April, but experts predict a substantial surge later in the year. Cornwall Insight forecasts a July price cap of £1,973 annually for a typical household due to heightened gas prices resulting from Middle East conflicts.
As the current tax year concludes on April 5, it is crucial to maximize tax allowances before the new tax year commences on April 6. Key allowances include a £20,000 ISA limit and a £60,000 pension contribution cap before tax implications apply.
From April 6, sole traders and landlords earning over £50,000 annually must maintain digital records and submit tax updates quarterly under the Making Tax Digital initiative. Compliant software compatible with Making Tax Digital is mandatory for this new process.
Changes to agricultural and business property reliefs for Inheritance Tax will be enforced from April 6, introducing a £2.5 million cap before Inheritance Tax is triggered. Assets surpassing this threshold will receive a 50% tax relief, while the standard Inheritance Tax rate remains at 40%.
Effective April 6, the Dividend Tax rate will rise to 10.75% for basic rate taxpayers and 35.75% for higher rate taxpayers, up from 8.75% and 33.75%, respectively. Dividends represent profits distributed by companies to shareholders.
The Capital Gains Tax rate applicable to Business Asset Disposal Relief and Investors’ Relief will increase from 14% to 18% from April 6, with the £1 million lifetime limit for these reliefs remaining constant. This adjustment implies higher tax obligations for entrepreneurs and investors on qualifying business sales.
From April 6, individuals working from home will lose the option to claim tax