UK tax changes introduced in April – and what it means for your money | Personal Finance | Finance

This month heralds the introduction of significant changes that will affect your money moving forward.

The UK tax year commences today (Sunday, April 6) and runs until April 5, 2026.

This is the 12-month period used by the government to assess and manage the taxation of individuals, including employees, directors, shareholders and people who are self-employed.

Cameron, a UK personal finance expert, has highlighted some financial changes occurring in April.

In a video posted on TikTok, he stated: “Here are some of the big changes coming in April this year that are going to impact your money.”

1. National Living Wage will see an increase

Cameron started off with some “good news for workers.” He announced that the National Living Wage is set to rise from £11.44 per hour to £12.21 for employees aged 21 and over.

This represents a 6.7 per cent increase. The National Living Wage, which was implemented on April 1, 2016, is the minimum wage that employers are required to pay their full-time employees who are 21 years old and above, as stipulated by the government.

2. Employer National Insurance will increase

Cameron further noted: “At the same time, employer National Insurance is increasing from 13.8 per cent to 15 per cent while the threshold for contributions is dropping from £9,100 to £5,000.” Employer National Insurance Contributions (NICs) are taxes that employers pay on top of their employees’ wages.

Bright HR clarifies: “It’s a government requirement for businesses with employees and these contributions help fund services like the NHS, state pensions and other social security benefits. While employees also pay National Insurance, their contributions are deducted from their pay whereas your employer’s NICs are paid on top of their wages. It’s a separate cost to you, directly tied to your employees’ earnings.”

3. More stamp duty

The personal finance expert then shifted his focus to stamp duty. He warned: “If you’re hoping to buy a house, be prepared to pay more in stamp duty. Currently first time buyers don’t pay any stamp duty on homes worth up to £425,000 but this will drop to £300,000.

“The stamp duty threshold for non-first time buyers will also drop from £250,000 to £125,000.” As per the government website, Stamp Duty Land Tax (SDLT) is applicable if you purchase a property or land over a certain price in England and Northern Ireland.

This tax applies when you acquire a freehold property, buy a new or existing leasehold, purchase a property through a shared ownership scheme or are transferred land or property in exchange for payment, such as taking on a mortgage or buying a share in a house. The website indicates that the threshold is where SDLT begins to apply and if you buy a property for less than the threshold, there’s no SDLT to pay.

4. Increase in State Pension

In his TikTok video, Cameron announced a 4.1 per cent increase in the State Pension for pensioners. According to the government website, you can claim the new State Pension when you reach State Pension age if you’re a man born on or after April 6, 1951 or a woman born on or after April 6, 1953.

The site further clarifies that if you were born before these dates, “these rules do not apply” and you will receive the basic State Pension instead. Additionally, you will need ten qualifying years on your National Insurance record to be eligible for any new State Pension.

5. Higher university tuition fees

On the topic of higher education, Cameron revealed that “for the first time in eight years”, university tuition fees are set to rise. He stated that from the 2025/2026 academic year, students will be required to pay £9,535 per year, which is “£285 more than before.”