BBC news recently reported that 29 million workers could be affected by 45 new tax and benefit changes that were identified by Credit Action, a charitable organization. They take effect on 6 April.
What does this mean in terms of raw numbers and data? The Institute for Fiscal Studies calculated that the average loss seen by these households would be about £200. Riding on the heels of the changes in January, which resulted in a loss of about £680 on average per household, this isn’t an easy pill to swallow.
With changes coming so suddenly, it has caught many people off guard and put them in a tight position with their finances. You might have a large purchase coming up that you can’t put off, but there are organizations that can help you like Pounds to Pocket.
It’s been reported also by BBC that the changes to income tax will be the largest difference most will notice. They estimate that 750,000 people will pay a 40% higher tax rate. However, there is some good news in that half a million people will be put in a tax bracket that is more beneficial to them.
Basically, the bottom line is that major changes are coming in the next few days, with more to come in the coming years. Organizations like Credit Action are warning people that they have to start planning now for the coming changes.
There are many ways to plan for these changes. One thing you can do is use Pounds to Pocket to take out a personal loan for a big purchase you are planning to make. That way, you can pay off these purchases gradually, and keep money free for other immediate expenses.