The start of April, according to the poet Geoffrey Chaucer, brings showers of sweetness and the melody of the first birdsong.

However, in the real world, it also marks the beginning of the tax year.

According to the many and various pundits now ‘blogging’ all over the social media world, if you are relatively well-off (whatever that means), the chances are, April will make you ‘even richer’. If you are in a low-paid job, you may also be better off, thanks to generous increases in the National Minimum Wage. In addition, pensioners and recent students may also have reason to celebrate.

According to the many and various pundits now ‘blogging’ all over the social media world, if you are relatively well-off (whatever that means), the chances are, April will make you ‘even richer’.

However, if you are responsible for paying council tax (that will be all home owners), your bill is likely to rise sharply. In addition, we will see nearly 9 million1 workers having their pension contributions increase significantly with Auto Enrolment kicking in.

Income Tax

Almost all taxpayers will be better off as a result of changes to income tax. The point at which workers start paying tax will rise from £11,500 to £11,850, saving basic-rate taxpayers some £70 a year. The level at which higher rate tax (40%) starts, rises from £45,000 to £46,350.

However, the rise in income tax thresholds is only going up by inflation. The Institute for Fiscal Studies (IFS) points out all other rises, since 2010, have been more generous.

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