Important Tax Changes from 6th April 2012


Tax Changes Taking Effect from 6th April 2012:

April 6th is the start of the new tax year. As a result, there are several significant changes to tax and benefits taking place that will affect personal and family finances. These are outlined below:

However, many changes to individual and business tax rates have already taken effect since the 1st April - including reductions in Corporation Tax and changes in Capital Allowances. Click here to download your free tax rates guide 2012-13 which outlines all of the major changes.

1. Personal Allowance (i): For those under 65, the amount of income that is tax free has risen by £630 to £8,105.

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2. Personal Allowance (ii): For those aged between 65 and 74 years old, the personal allowance rises from £9,940 to £10,500.

3. Benefits: Certain Benefits (such as jobseeker's allowance, income support, disability benefits, maternity benefits and incapacity benefit) will rise by 5.2% in line with the CPI measure of inflation last September.

4. Child element of Child Tax Credits: This rises on 6th April 2012 by £135. However, the couple and lone-parent elements of working tax credit are frozen.

5. Working Tax Credits: The time that couples will have to work in order to qualify for working tax credits will rise from 16 to 24 hours from 6th April (apart from a few exceptions). In order to qualify, one member of the couple will have to work for at least 16 hours a week.

6. Basic State Pension: From Monday, the basic state pension is set to rise by £5.30 a week to £107.45 a week.

For more information about Mitchell Charlesworth's Tax Services, contact specialist Tax Partner David Antonia or Tim Adcock on tel: 0151 255 2300 or complete this quick enquiry form.

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