As the calendar turns to the year 2024, there are significant financial changes on the horizon that have the potential to directly impact your financial well-being. From adjustments in taxes to increases in pension, these key financial dates are crucial for your economic health. Let’s delve deeper into what can be expected in the upcoming year.
January
In the inaugural month of the year, Ofgem’s energy price cap is scheduled to rise, resulting in an approximately £94 increase in annual bills for the average household. Moreover, around 27 million employed workers will benefit from a reduction in national insurance from 12% to 10%, leading to substantial annual savings for taxpayers across different income brackets. This is also the month to mark the deadline for self-assessment tax returns.
March
March will bring about an increase in rail fares as well as the highly anticipated Budget announcement, which will provide an update on the state of the economy and the government’s tax and spending plans. Additionally, the month will see the end of a 5p cut in fuel duty, potentially resulting in higher costs for motorists at the fuel pumps.
April
The commencement of the new tax year in the UK will bring several changes, including an increase in the national living wage and adjustments in council tax, childcare benefits, TV licensing, and water bills. Meanwhile, Class 2 National Insurance Contributions for self-employed individuals will be eliminated, resulting in an average annual saving of £186.
June
An important change to take note of in June is the expected circulation of new banknotes featuring King Charles. The alteration in the design of the notes will mark a significant visual change to the currency in circulation.
August
In August, the anticipated end to the reduction in alcohol duty will likely result in the restoration of previous duty rates, impacting the cost of alcoholic beverages.
September
The rollout of free childcare will continue in September, with free childcare being extended to 30 hours for children from the age of nine months. Eligible families will want to explore the option of tax-free childcare to take advantage of this benefit.
December
As the year draws to a close, a general election may potentially take place, potentially impacting financial markets and personal finances, as seen in previous political events.
Expert Opinions
Financial experts have cautioned that while certain aspects such as tax benefits and childcare costs will see a decline, most tax thresholds have been frozen, and a few are even expected to fall. This could result in a significant number of individuals being worse off by the end of the year. Additionally, the looming prospect of a general election has the potential to create market instability, impacting personal finances based on anticipated government policies.
In conclusion, the financial landscape in 2024 is poised to undergo significant changes, with several key dates to watch out for. Staying informed and taking proactive steps to manage your finances will be crucial in navigating through the upcoming year.
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