Dates for your financial diary

As we head into another New Year, 2024 has certainly delivered a number of economic and financial changes which are due to continue into 2025.  Whether you’re looking forward to next year with enthusiasm, or a little concern, we thought we’d put together a few key financial dates for you to bookmark, that could have an impact on your overall financial wellbeing.  As the saying goes “to be forewarned is to be forearmed.”

January

As you raise a glass on New Year’s Eve, as New Year’s day dawns, the new energy price cap will rise by 1.2% for January-March, increasing the average annual household bill to £1,788. Bear in mind this is based on average usage so your bills could be higher depending on your energy consumption and efficiency.

The Premium Bond prize fund rate drops to 4% on the same day, making these less attractive compared to other types of savings accounts, and the much talked about VAT tax break for private schools ends, meaning fees will rise by 20% from 1st January.

If you’re self-employed you must ensure your self-assessment tax return is filed and paid by 31st  January to avoid any fines or unwelcome letters in the post.

February

The month of love brings the first meeting of the Bank of England’s Monetary Policy Committee (MPC) who will decide whether or not to alter the base rate, currently sitting at 4.75%.  Interest rates are forecast to fall in 2025 but we’re unlikely to see the historically low levels we had following the financial crisis.  Additional meetings will take place in March, May, June, August, September, November and December.

March

There could be another Budget statement delivered by the Chancellor in March 2025 – time will tell as to when the date will be set.  Train fares are definitely increasing by 4.6%, and the stamp duty holiday ends on 31st March meaning this unpopular tax will return to its standard level of being payable on houses over £125,000 (versus £250,000) and £300,000 for first time buyers, down from £425,000.

April – it’s a busy month!

On April Fools Day, the energy price cap for the second quarter of 2025 comes into effect, and a raft of general bills will increase such as water rates, car tax and TV licence fees. We will also see a rise in the National Living Wage to £12.21 per hour and the Minimum Wage for those aged 18-20 years will go up to £10.00 per hour.

5th April  sees the end of the 2024-2025 tax year, so make sure you utilise your entire ISA allowance of £20,000, and pay any extra pension contributions before this date.  Continuing with pensions, 5th April is the deadline for making backdated claims for National Insurance Credits (to 2006) to boost state pensions, which will rise by 4.1% on 6th April.

July

The start of a new quarter heralds a potential change in the energy price cap and for those of you paying tax via self-assessment, the second payment on account for the 2024-2025 tax year must be paid by 31st July.

August

1st of the month sees a rise in student fees from £9,250 to £9,535, which have been frozen since 2017.  The inflation figure for July will be announced on 20th August which tends to set the tone for any rail fare increases in 2026.

September

The free childcare allowance will double this month from 15 hours per week to 30 hours per week, for children over the age of 9 months old, which for many parents could significantly reduce their childcare expenditure.

October

Yes you guessed it, another new quarter means a new energy price cap will be announced which will take us through until 31st December; whilst all these announcements are important, this one has a higher impact simply due to the need to heat our homes as we journey towards the winter months.  Then for those new to self-employment, 5th October is the deadline to register either a side hustle, rental income from property, or jumping from employee into the world of freelancing.

The main Budget statement was delivered in October 2024, and we will need to wait with some uncertainty, as to when this will be replicated in 2025.

Whilst these financial dates will not be relevant for everyone, and for some relatively inconsequential, they at least take away the element of surprise when we know to expect some form of changes or announcements.  As ever, if you need independent advice on your own personal circumstances, please get in touch with our financial advisers who will be happy to discuss options that are individually tailored to you.

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