Households all across the country have been budgeting to make ends meet in the face of growing cost of living crisis.
In order to help you avoid any nasty financial surprises, we've compiled all the key dates and changes that could affect your personal finances throughout 2023, giving you plenty of time to prepare. Some of the key financial events happening next year include a new round of cost of living payments accompanied by bill hikes, the Mirror reports.
Furthermore, energy bills are expected to rise again which could make things difficult for a lot of households already facing energy poverty. Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: "2022 has been a bruising year for our finances with spiralling inflation putting pressure on our budgets.
Read more: The people in Greater Manchester paying thousands more than everyone else for bills this winter
"It’s expected to ease off as we go through 2023 but it’s going to stay tough. Added to this the amount of tax we pay continues to rise as the complex web of tax freezes and increases continues to pull more people into paying more tax.
"We need to keep watching the pennies closely throughout 2023."
1. Tax return deadline - January 31
If you need to file an online self-assessment tax turn, the deadline for doing this is January 31, 2023. This is for the 2021/22 tax year. If you miss this deadline, you could be fined a minimum of £100 even if you have no tax to pay.
If you continue to not file your returns, you may be fined £10 a day after three months, up to a maximum of £900. After six months, you'll get a further penalty of 5% of the tax owed or £300 - whichever is greater - which is repeated at 12 months.
2. Rail fares rise - March 5
Rail fares will rise by up to 5.9% from March 5.
While tickets usually go up in January every year, in line with the retail prices index (RPI) measure of inflation for July the previous year, the rise was pushed back until March.
The 5.9% figure is instead in line with average earnings growth in July.
3. Spring Budget - March 15
The Spring Budget will be held by Chancellor Jeremy Hunt on March 15 and will be accompanied by a forecast from the Office for Budget Responsibility.
4. Help to Buy deadline - March 31
If you've applied for a Help to Buy equity loan, you must complete the purchase of your home by March 31. The scheme was designed to help wannabe homeowners with a 5% deposit get on the housing ladder.
As part of the scheme, the government lends you up to 20% of the property price and after five years you'll have to start paying interest on the loan.
5. Energy discounts end - March 31
Millions of households across the UK are currently getting a £400 rebate on their energy bills, split over the winter period months. The scheme is due to end after March 31, 2023 with no current plans for it to be extended.
6. Energy Price Guarantee rises - April 1
The Energy Price Guarantee will increase from £2,500 a year for the typical household to £3,000.
It's important to note that this isn't the highest amount you could pay on your energy bills. The Energy Price Guarantee has put a limit on the unit rates and standing charges - so if you use more energy, you could pay more. Use less, and your bill will be less.
7. Council tax bills go up - April 1
Council tax rates will rise again on April 1 - with the average bill set to soar past £2,000 for the first time.
Instead of councils only being able to raise them by 3% without a referendum, they will be able to raise them by 5%. This is made up of 3% in core council tax plus a further 2% for social care.
8. Water bills could rise - April 1
New rates for water bills will begin on April 1. Ofwat, the water regulator, has told some suppliers to return money to customers by lowering their bills because they missed targets on things like water supply interruptions and pollution.
9. Prescription charges to change? - April 1
NHS prescription charges in England were frozen throughout 2022/23 for the first time in 12 years.
It's not yet clear whether another freeze will be announced - with prescription costs potentially rising from April 1. Currently, an NHS prescription costs £9.35 or £30.25 for a three-month prescription prepayment certificate (PPC).
10. End of the tax year - April 5
The end of the current tax year always falls on April 5. This is the last day before all your tax allowances reset.
For example, you have a £20,000-a-year ISA allowance that will reboot on April 6. If you're saving for your children into a Junior ISA, the yearly allowance is £9,000. Or if you're saving into a Lifetime ISA, you can deposit up to £4,000 every tax year to get £1,000 free from the Government to put toward your first home or retirement.
11. Tax changes - April 6
The 45% additional rate of income tax threshold is being cut from £150,000 to £125,140, which means more higher earners will pay higher tax.
The personal allowance will remain frozen at £12,570, as will the 20% tax threshold from £12,571 to £50,270. The inheritance tax nil rate band remains at £325,000, and the residential nil rate band £175,000.
Everything else from National Insurance to ISA rates also stays the same.
12. State pension and benefits rise - April 10
The state pension will rise by 10.1% following the return of the triple lock was confirmed by the Tories.
The triple lock guarantees the state pension rises by the highest of average earnings, CPI inflation and 2.5%.
But this was downgraded to a double lock to avoid a record 8% increase after the pandemic pushed earnings growth higher as workers returned from furlough. However, the government confirmed the triple lock guarantee is being kept in place, the full state pension will rise from £185.15 to £203.85 per week.
The basic state pension will increase from £141.85 per week to £156.20 per week under the triple lock. Benefits will also rise by 10.1% from April 10. For someone claiming Universal Credit, the standard allowance for someone single and under 25 will rise from £265.31 to £292.11.
Joint claimants, where one or both people are aged 25 or over, will see their standard allowance rise from £525.72 to £578.82.
13. Stamps deadline - July 31
Classic stamps are being replaced by digital barcodes. Traditional stamps will no longer be accepted from July 31.
However, you can still use themed, commemorative and non-barcoded Christmas stamps beyond this date. Before this deadline, you need to either use your old stamps or swap them for free for barcoded versions.
14. Payment on account deadline - July 31
Payments on account are advanced payments towards your tax bill if you are self-employed. These payments are normally made twice a year, to help spread the cost of your tax bill.
The deadlines are January 31 and July 31.
15. Paper tax deadline - October 31
If you plan on filing a paper self-assessment tax return, the deadline is October 31. If you don't send your paper forms in time, you can instead fill out your tax return online - the deadline for this is January 31 the following year.
Again, you face fines if you miss the deadline. You should also ensure that you don't submit both a paper and online tax return.
16. Energy help - November
Several energy help schemes are expected to run again in November.
This includes the Warm Home Discount scheme, which offers £150 off your energy bill to certain pensioners and those on a low income receiving certain benefits. Winter Fuel Payments worth up to £300 are expected to be dished out again as well.
If you receive a Winter Fuel Payment, then you'll be eligible for the pensioner cost of living payment as well - this means you could potentially get up to £600. Winter Fuel Payments are normally worth between £100 and £300 - depending on your age, who you live with and if you claim benefits.
You could be eligible for a Winter Fuel Payment if you were born before September 26, 1956. You normally need to have lived in the UK for at least one day in the qualifying week - between 19 to 25 September 2022.
17. Inflat ion
The latest inflation figures from the Office for National Statistics will be released on January 18. Inflation, which is a measure of how prices are changing over time, is currently at 10.7% for the 12 months to November - near a 40-year high.
At its highest point, inflation reached 11.1% in the 12 months to October. The Bank of England expects inflation to “fall sharply from the middle of next year” but is still way off its target of 2% inflation.
Inflation figures get released every month, with further announcements expected on:
- February 15
- March 22
- April 19
- May 24
- June 21
- July 19
- August 16
- September 20
- October 18
- November 15
- December 20
18. Interest rates
The Bank of England base rate - which influences the interest rates banks and lenders off you, as their customer - is currently at 3.5%. The base rate was at just 0.1% in December 2021 but has been hiked nine times in a row over the last year.
The Bank of England's Monetary Policy Committee will next meet to discuss whether to raise interest rates again on February 2. By raising its base rate, the Bank hopes to lower the level of inflation. The theory is, when interest rates are higher, people spend less, so inflation should drop.
Other dates where the Monetary Policy Committee will meet in 2023 and potentially adjust the base rate again are:
- March 23
- May 11
- June 22
- August 3
- September 21
- November 2
- December 14
19. Cost of living payments
There will be several more rounds of cost of living payments next year. This includes £900 to households on certain means-tested benefits, including Universal Credit, Tax Credits and Pension Credit.
Another £150 would go to people on disability benefits including Personal Independence Payment. There will also be another £300 to pensioner households who already receive a Winter Fuel Payment.
20. Review of state pension age
The next review into the state pension age is expected in early 2023. The state pension age is currently 66 and is due to rise to 67 by 2028.
Under current plans, it is due to hit 68 by 2046 though the Government has stated its intention to bring this forward to 2039.
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