April Fools’ Day is an annual celebration commemorated on April 1 by playing practical jokes and spreading hoaxes. Unfortunately this year the changes coming from the government are no hoax and will see some people happier than others but will effect each and every one of us.
New Sugar Tax: The Soft Drinks Industry Levy (SDIL), also known as ‘the sugar tax’, is set to increase the cost of a can of fizzy drink by around 8p when it comes into force on April 1st after it was first announced in the 2016 Budget in a bid to tackle rising obesity rates.
The new tax will make soft drinks companies pay a charge for drinks with added sugar with two bands for deciding on the tax increase.
The amount of tax depends on the total sugar content of the drink with companies having to pay 18p per litre on tax if the drink has 5g of sugar or more per 100ml, or 24p per litre if the drink has 8g of sugar or more per 100ml.
Diesel cars tax change: If you bought yourself a new Diesel car last year you will be subject to a change in the cost of taxing your vehicle when new bands are released effective from April 1st.
The rise for a Ford Fiesta could be as little as £20-30, but a Porsche Cayenne would be hit with a rise in the hundreds of pounds if the car fails to meet the latest Euro 6 emissions standards in real-word testing.
The changes don’t apply to commercial vans or vehicles, only cars.
All cars that cost more than £40,000 outright will attract an extra premium fee of £310 for years two to six of ownership, regardless of emissions.
PAYE tax rates 2018 to 2019: The annual personal allowance for employees will be rising to £11,850 per year (up from £11,500) with the UK basic tax rate 20% on annual earnings now applicable to £34,500 (up from £33,500)
- Basic rate (20%) is now at £1 – £34,500
- Higher rate (40%) on earnings between £34,501 – £150,000
- Additional rate (45%) on annual earnings over £150,001
Dividends allowance reduced: The dividend allowance which was introduced in 2016/17 at £5,000 is set to be reduced to £2,000 for from 2018/19.
This would mean a basic rate taxpayer would have an extra tax liability of £225, £975 for higher rate and £1,143 additional rate taxpayers.