As we approach the new tax year let us look at some of the changes that we will be facing. These will leave some of us better off but many will face higher bills. Let us look at some of the changes and the effects that they will have on us.
Introduction of a new Sugar Tax
This is a part of the government’s fight on obesity and bad health and follows from the research showing that as many of 8,000 cases of type two diabetes a year are linked to fizzy drink consumption. From April all drinks with a total sugar content above 5g per 100ml will be taxed at 18p a litre, while sugary drinks with more than 8g of sugar content per 100ml will be taxed at 24p a litre.
For instance, a classic 1.75l bottle of Coca Cola which currently costs around £1.66 has a sugar content of 10.6g per 100ml, meaning that the cost will increase by an extra 42p to £2.08 per bottle.
Changes in Car
Tax New car tax rules, introduced as part of efforts to cut back on toxic fuel, could end up costing diesel motorists anything from £20 to £500 more a year. From April, new cars that don’t meet new emissions standards will be pushed up a tax band for the first year on the road, increasing the amount of car tax payable. The new rules will only apply to new cars bought and registered after the April date. If you currently own a diesel car and it was registered before that date then you will pay your current car tax rate.
Minimum wage increase
In April the National Living Wage, the minimum rate for workers aged 25 and over, will increase to £7.83 an hour. At the same time, the minimum wage for all other workers will also go up – including apprentices who will see their rates rise 5.7% from £3.50 to £3.70 per hour.