If you didn’t know, April was the time when the financial year ended, and a new one began. I was aware of it, but hadn’t really paid much attention because I have been busy on, well, life! I’m sure most people can relate to this.
What Changes In The Financial New Year?
The financial year end is a time of change, and often this has an impact on our finances. For a start, the tax allowances change. The changes are in all sorts of areas like tax band thresholds, pension lifetime allowance and personal tax allowance (the amount you’re allowed to earn before you get taxed). This is a list from gov.uk of the changes that have taken place and which are now in effect.
I also received an email from Yolt which provided me with a really handy guide to the changes that have happened this year. It prompted me to discuss a few changes in my 10-minute takeaway which is what I am sharing with you today.
What Else Changed?
Now for me, when I checked my payslip in April, I had gained £20 through the changes that have taken place. Unfortunately there have been some hikes in council tax and national insurance, AND in pension contributions, so while my pension contribution hasn’t changed, the increase in bills has eaten away at that £20 gain leaving no better off really!
This is all important stuff that we’re paying into – we need to make contributions to fund vital services in our community, including the NHS. We also need to pay more into our pensions to fund our futures.
So I choose to see these increases as a positive thing, rather than something to be complaining about. Yes it’s irritating and can feel like you’re going no-where fast, but use it as a source of motivation and empowerment. The alternative is no fun.
I guess the point I’m trying to make is to be curious. Notice how your pay has changed and how your bills have changed. When was the last time you looked at you payslip or what was coming out of your bank account? You might find some things you need to make quick changes with!
Use the financial new year as a time to reflect on your money and where it’s going.
I hope you enjoyed that 10-minute takeaway. Leave me some comments – how has the financial year impacted on your finances?
Until next time!
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