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UK: 20 changes to your money in 2020

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  • UK: 20 changes to your money in 2020

    Found this on my local newspaper website the Nottingham Post and thought I'd share - 20 changes to your money in 2020 that you might not be aware of...

    The 20 changes to benefits, pensions, tax rules, wages and more in 2020

    A wave of new changes are planned for next year, affecting everything from the price of a flight to overdrafts, benefits and pensions.

    The new rules will see people pay less National Insurance, but more council tax.

    Benefits are rising, while tax breaks are taken from landlords - and while the state pension is up, free TV licences are being taken away, as the Mirror reports.

    There are also new rights coming affecting bank accounts and broadband - as well as a new £20 note .

    Hargreaves Lansdown personal finance analyst Sarah Coles said 2020 should be the year we "finally see all sorts of things we’ve been waiting interminably for", including an increase in benefits, to a pause in state pension age rises.

    She addded: "It’s not all good news though, especially if you’re over the age of 75 and now have to find the cash for a TV licence, or if you’re a landlord who relies on mortgage interest relief at a higher rate to make renting add up.”

    Here are the 20 biggest changes we know about:

    1. Rail fares increase 2.7% - January 1

    It's a case of new year, new price when it comes to train fares - with an average rise of 2.7% coming.

    There are some ways to get round it though.

    AJ Bell personal finance analyst Laura Suter said: “To beat the hikes you can buy your season ticket in 2019 and pay this year’s prices, but that’s not an option if you’ve still got time left on your current ticket.

    "You could also make use of your employer’s season ticket loan scheme, to cut the cost, or put the season ticket on a 0% interest credit card to spread the cost across 12 months, meaning you don’t have to start the new year by forking out thousands of pounds in one go.”

    2. Mini-bond advertising banned - January 1

    The Financial Conduct Authority (FCA) is banning the mass marketing of mini-bonds to the general public from January 1.

    The City watchdog said customers have been drawn in by claims of high interest, fixed over three to five years, but they can leave people with nothing at all if things go wrong.

    Suter said: “Many of these providers offered interest rates of 8% or more and likened their returns to cash, meaning that people who have grown weary of their cash savings earning next to nothing were lured into investing in the hope of getting a return on their money."

    3. Brexit 50ps - January 31, probably

    We get new 50ps with the date Britain leaves the EU stamped on them, but only when we actually do.

    So far they've made versions with 29 March and 31 October on them, then scrapped them, with the next date set at January 31.

    MPs have now voted for this date, but the deal also needs to be cleared by the European Parliament - although this is expected to be simple.

    Of course, we've heard that before.

    4. Broadband rules to make prices cheaper - February 15

    New rules from Ofcom mean customers will be told when they come to the end of their contract, as well as about any changes in price at this point. Providers also have to tell customers about the best deal available at the time.

    Suter: “Anyone of the 8.8 million people with broadband who are out of contract could see their bills cut next year. Ofcom has intervened to get those who don’t shop around a better deal, with providers pledging to cap rates for those out of contract and stop preferential rates being offered just to new customers."

    5. New JMW Turner £20 note enters circulation - 20 February

    After the launch of the polymer £5 and £10 notes, the Bank of England announced a shiny new plastic £20 would follow.

    The current cotton note was first issued in 2007, and has Scottish economist Adam Smith on the reverse - it will be phased out over the year.

    The new one will be graced with the face of iconic artist J.M.W. Turner and made of the same plastic as the current £5 and £10 notes.

    The release date? 20 Feb 2020 (or 20/02/2020) of course.

    6. The right to request decent and affordable broadband - 20 March

    Some areas of the country have the choice of slow broadband, hideously expensive broadband, or no broadband.

    That's set to end for many with the introduction of new rights.

    The newUniversal Service Obligation will give people the right to request decent, affordable internet wherever installing it would cost no more than £3,400 a household.

    7. Minimum wage rise - April

    We're currently expecting a new rate of £8.67 for those aged 25 and over, up from £8.21 an hour now, but the exact figure can't be confirmed yet.

    New hourly rates for the following April are typically announced in the Autumn Budget, however chancellor Sajid Javid called this year's spending review off thanks to the fun of the Brexit extension and the following general election.

    The Budget is now expected in February, when we can confirm the exact rise.

    8. Inheritance tax breaks get more generous - April 6

    From April people will be able to pass on more of their wealth when they die, before tax is applied to it.

    Inheritance tax breaks have been rising since April 2017 for people who own a home, and will hit £175,000 this year.

    Suter said: “This means that including the standard nil rate band, a couple can leave a property worth £1million entirely inheritance tax free.

    "There are some tricky rules you have to stick to, so the property must be left to a child, grandchild, or step versions.

    "Those with very large estates won’t get the full amount, as anyone with an estate valued at more than £2m will lose the allowance by £1 for every £2 they are over this limit.”

    9. Landlord tax breaks finally axed - April 6

    Over the past few years, landlords have seen some of their tax breaks whittled away.

    Previously, the money spent on a mortgage could be taken away from earnings so you pay less tax. Effectively, it meant there was a 40% discount for many on their mortgage payments.

    From April, that will be cut to 20%.

    10. Second homeowners face higher taxes - April

    There are also new taxes for people with more than one house.

    Suter said: “The Government has made three big changes to how the tax works when you come to sell this property.

    “Firstly, many sellers will lose the ‘lettings relief’ tax break, affecting how much capital gains tax you pay when you sell the property. Currently you get capital gains tax relief up to £40,000 per person (so £80,000 per couple) if you let out a property that was your home, but from next year this relief will only apply to landlords who are actually living in the property with their tenants.

    “The next big change is to private residence relief, which currently means that any increase in the property’s value during the final 18 months that you own a property is not counted for capital gains tax purposes. However, from April next year that will be limited to nine months.

    “The third change is that you will have to pay up for any capital gains tax you owe much more rapidly. Currently you just have to pay this bill by the end of the January in the following tax year, but from April you have just 30 days to pay the tax due on any gains from the sale of UK residential property."

    11. National insurance - April

    The Government promised to change national insurance thresholds in its manifesto.

    Under their plans, you would pay no national insurance contributions on the first £9,500 of your earnings - up from £8,632 at the moment - working out as a saving of around £100 a year.

    But it's not quite the all out win you might think - with the move meaning some of the worst off might now miss out on some of their state pension as a result.

    Steven Cameron, pensions director at Aegon, said: “Under current rules, those not paying any NI lose out on credits towards their state pension.

    "Individuals need 35 years of qualifying NICs to receive the full state pension with those with fewer qualifying years seeing a reduction and receive none if they have fewer than 10 years of credits.”

    12. Student loan repayments fall - April

    People paying back student loans get a minor tax break in April too.

    Recent graduates will be able to earn £26,575 a year before payments kick in up from £25,725 this year. That should save them £76.50 in payments a year.

    People who graduated between 1998 and 2011 will see their threshold rise too - from £18,935 a year to £19,390.

    13. Overdraft fees will be easier to understand - April 6

    In an effort to make overdrafts fairer and easier to compare, the FCA banned charges for unarranged overdrafts as well as a "per day" costs.

    Instead, from April banks have to charge a single rate for both authorised and unauthorised overdrafts and that must be represented as an annual percentage.

    14. State pension rise - 6 April

    State pension payouts are set to rise by 3.9% in April - probably. We can be almost certain of this - but not quite 100%.

    Much like minimum wage, these are normally announced in the Budget. Given that was postponed the official rate isn't known yet.

    That said, the Government has guaranteed the rules won't change around pension rises - and under those rules retired Brits are in line for a 3.9% increase adding £5.05 a week to the ‘old’ basic state pension and £6.60 a week to the ‘new’ state pension.

    15. Benefit freeze ends - 6 April

    After five years with no rises, about 2.5 million people on Universal Credit and millions more on legacy benefits will get a 1.7% increase in April.

    Coles said: "The end of the four-year benefits freeze will be a shot in the arm for people on very low incomes who’ve had a mountain to climb to make ends meet for years. "

    The increase means someone on £500 a month in benefits will get an extra £8.50.

    16. Council tax to rise - April

    Local authorities will get the power to raise council tax by up to 2% from April - and councils with adult social care responsibilities can raise bills by as much as 4%.

    That's worth an extra £70 to on the average band D council tax home in England.

    Bigger rises can be made too, but the council needs to hold a referendum to push them through.

    17. Pension 'adult dependants' credit ends - April

    The adult dependent's credit is worth £70 a week on a state pension and designed to help people with someone else relying on them. It will stop being paid in April.

    The move comes as a result of the pensions Act 2007, which blocked people from applying for the credit after 2010.

    But anyone already getting the extra cash by then was allowed to keep claiming it for as long as they were entitled.

    That's stopping in April, seeing anyone with an "adult dependent" - generally a husband or wife under state pension age - lose the extra cash.

    18. Long-haul flights get more expensive - April 6

    Air passenger duty rises £2 for economy seats, £4 for premium seats and £13 for private jets when you fly long-haul.

    19. The end of free TV Licences for over 75s - 1 June

    TV Licences are free for over 75s, but from June 1 you'll only get one if you're receiving Pensions Credit.

    Around 3million households are set to be affected.

    BBC chairman David Clementi said: “Copying the current scheme was ultimately untenable."

    He added: “Linking a free licence for over 75s to Pension Credit was the leading reform option. It protects the poorest over 75s, while protecting the services that they, and all audiences, love.

    "It is the fairest and best outcome. It is one we can implement and endorse. This is an outcome that is the fairest possible in difficult circumstances.”

    He added that the Government could step in and restore them whenever it felt like it.

    20. State pension age rising to age 66 - October

    From October you'll need to be at least 66 to get a state pension - whatever your gender.

    The age people can at has been rising for years - starting with increasing women's state pension age until it matched men's, then increasing both from 65 to 66.

    AJ Bell analyst Tom Selby said: “The rise started incrementally in 2018 and is scheduled to complete by October 2020. That means anyone born after 5 October 1954 will have a state pension age of at least 66."

    It's not the last time it will rise though.

    "The Conservatives have set out plans to increase the state pension age again to 67 by 2028 and 68 by 2039," Selby added.

    nottinghampost.com/news/uk-world-news/20-changes-benefits-pensions-tax-3683205
    Poor Pensioners getting a rough deal.

  • #2
    Originally posted by Wayne View Post
    Poor Pensioners getting a rough deal.
    tbf they're the only ones still watching "proper TV"
    1 Harry Styles|2 Dua Lipa |3 Doja Cat |4 Elodie|5 Lizzo |

    Comment


    • #3
      Originally posted by SholasBoy View Post
      tbf they're the only ones still watching "proper TV"
      And look what TV made them do.
      Waffles are checked cookies

      Comment

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