Financial changes coming in 2017March 22 2017, 0 Comments
It probably hadn’t escaped your notice that that there are a number of changes bound to affect your personal finances this year. In case you’ve missed them here are a few that could affect you:
New car tax rates
This change is only for cars registered after April 2017. The amount of tax you pay depends on the CO2 emissions but only in the first year. But it changes again if the car is over £40,000.You can ignore this if you have no plans to buy a new car. However, this may affect you in a few years when buying second hand. After the first year the tax is worked out based on the type i.e petrol or diesel cars will be £140 per annum
For further information check the gov.uk website: http://carfueldata.dft.gov.uk/
Lifetime ISAs (LISA)
Available from 6th April 2017 the LISA allows you to put up to £4000 a year into it until the age of 50. The government tops up this ISA every year adding 25% on your contributions, not the interest or previously added bonuses. This sounds like an excellent idea with great interest rates at a time when they are so low for savers. BUT there are limitations:
Can only be opened if aged 18-40 (before 6th April 17)The LISA was designed for first time buyers or as a pension.
You can withdraw money at any point before your 60 but you won’t get the bonus unless it is for a first-time house purchase or towards retirement.You will also be charged for withdrawing money before the LISA’s intended use.
There are not many providers for this ISA yet. In all honesty a whole new blog post could be created for this. Rather than do this I will point you in the direction of Moneysavingexpert which covers it all perfectly: http://www.moneysavingexpert.com/savings/lifetime-ISAs
Personal Allowance IncreaseIn a nutshell you won’t be taxed on income under £11,500. The basic rate limit will be increased to £33,500 and the higher rate threshold will be £45,000 in 2017 to 2018.
Extra IncomeYou can earn £7,500 tax free by renting a furnished room out. Or £1000 tax free from selling on Facebook, eBay, your local car boot or even baby/pet sitting. Further information can be found here: http://www.thisismoney.co.uk/money/howmoneyworks/article-3956682/How-earn-27-000-tax-free-Five-steps-make-money.html
National Living Wage
Rises from £7.20 an hour to £7.50 from April 2017.
From 6 April 2018 the tax free dividend allowance (introduced in April 2016) is to be reduced from £5,000 to £2,000
If you know of any other changes happening this year, please do comment below.
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