New tax year: how it affects your personal finances

5 Apr 2022

The new tax year starts on 6 April with a number of tax changes that will affect personal finances. As the 2021-22 tax year draws to a close, Stevie Heafford, tax partner at HW Fisher outlines the 10 key changes

1. State pension increases by 3.1%: the state pension will increase in April, albeit against a backdrop of rising costs - some argue this will cancel out any real gains.

2. Minimum wage increase: the National Living Wage (NLW) will rise to £9.50 from 1 April 2022. This represents an increase of 59 pence an hour or 6.6%.

3. National Insurance 1.25% rise: In the spring statement, the Chancellor confirmed these rises would go ahead. However, responding to concerns over the cost of living crisis, he announced that the income threshold at which you start to pay national insurance will rise to £12,570 from 6 July 2022.

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