New tax year – The beginning of the new tax year tomorrow will see significant changes to both tax and benefits in time in time for the beginning of the 2012/13 tax year.
One of the main changes will be the increase in the personal tax threshold from £7,745 to £8,105 per year; an increase of £630 of how much money people can earn each year without paying any tax.
Maternity pay and some benefits including job seeker allowance will rise in line with inflation to 5.2 percent.
Some of the changes though have been criticised by unions and opposition parties, particularly the freezing of child benefits and moves which will make parents have to work a minimum of 24 hours a week to qualify for working tax credits.
Other changes include the personal allowance for 65 to 74 year olds is to rise from £9940 to £10,500 and the lifetime allowance for pensions will reduce to £1.5 million from £1.8 million.