It’s the end of the tax year, which means your personal allowances, such as your ISA and how much you can put into your pension, will soon reset
April is always a big month for your money.
It’s the end of the tax year, which means your personal allowances, such as your ISA and how much you can put into your pension, will soon reset.
But in less good news, it’s the time of year when most bills go up – and households are set to be clobbered by a whole host of increases. We round up everything you need to know.
April 1 – Minimum wage rises
Millions of workers will see the minimum wage rise from April. For someone aged 21 and over, minimum wage will rise from £12.21 an hour to £12.71 an hour, while those aged 18 to 20 will see their rate rise from £10 an hour to £10.85 an hour. If you’re under 18 or you’re an apprentice, minimum wage is rising from £7.55 an hour to £8 an hour.
April 1 – Council tax rises
Council tax bills will rise again in April. Most local authorities in England are increasing by the maximum of 5%. If they want to introduce larger rises, they have to hold a referendum. A handful of councils have been given permission to introduce bigger increases. The average band D council tax bill in England for 2026/27 is set to be £2,392.
April 1 – TV licence fee rises
The TV licence fee is rising from £174.50 to £180 from April. You need a TV licence to watch or record live TV, or to watch anything on BBC iPlayer. For other streaming services, you do not need a TV licence if you only watch shows that are not being broadcast live.
April 1 – Water bills rise
Water bills in England and Wales will rise by an average of £33 a year, or 5.4%, from April. It was previously confirmed that Ofwat will allow companies to raise average bills by 36% in England and Wales over five years, to 2030.
April 1 – Car tax rises
The standard road tax rate for vehicles that were registered from April 2017 is rising from £195 to £200. There are different car tax rates for vehicles that were registered before April 2017 and these are also going up. The first-year “showroom” tax is also increasing from April.
April 1 – Broadband and mobile bills rise
Most mobile and broadband providers are hiking bills between £1 to £4 a month from April, adding up to £48 a year to bills. Telecom firms have been banned from linking mid-contract price rises to inflation – instead, customers must be told in “pounds and pence” how much their plan will increase by.
April 1 – NHS dental charges rise
NHS dental charges in England are rising by 1.7% from April 1. The cost of a routine check-up and others covered by Band 1 care will go from £27.40 to £27.90. Band 2 care, which includes fillings, tooth extraction or root canal treatment, will cost £76.60, up from £75.30. Band 3 rise means the cost of dentures will increase from £326.70 to £332.10.
April 1 – Air Passenger Duty rises
Air Passenger Duty, which is a tax that is added to all flights, is rising by 15% from April 1. Flyers will pay £2 more for economy short-haul flights, with the rate increasing from £13 to £15. The duty on an economy medium-haul flight – 2,001 to 5,500 miles – will rise by £12 to £102, and by £12 to £106 on a long-haul flight.
April 1 – Energy bills fall… for now
The Ofgem energy price cap is falling from £1,758 to £1,641 for the typical dual fuel household from April. But analysts say a big rise is coming this summer. Energy consultancy Cornwall Insight said its forecast for the July price cap is now £1,973 a year for a typical household, due to a significant increase in gas prices caused by the war in the Middle East.
April 5 – End of the tax year
The end of the current tax year always falls on April 5. This is the last day before all your tax allowances reset, so make sure you make the most of these before the new tax year starts on April 6. For example, there is an ISA allowance of £20,000 every tax year, as well as a cap of £60,000 for how much you can pay into your pension before you start to pay tax.
April 6 – Making Tax Digital
Sole traders and landlords with an annual income over £50,000 will be required to maintain digital records and submit tax updates quarterly from April 6. This new process is called Making Tax Digital. You will need to use software that is compatible with Making Tax Digital.
April 6 – Inheritance Tax change
Changes to agricultural and business property reliefs for Inheritance Tax purposes will be introduced in April 6. There will be a new cap of £2.5million before Inheritance Tax is due – for assets above this, 50% tax relief will be applied. The standard rate of Inheritance Tax is 40%.
April 6 – Dividend Tax rate rises
The Dividend Tax rate will rise from 8.75% to 10.75% for basic rate taxpayers and 33.75% to 35.75% for higher rate taxpayers from April 6. A dividend is a distribution of profits made by a company to its shareholders.
April 6 – Capital Gains Tax increase
The rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief is increasing from 14% to 18% from April 6. The £1million lifetime limit for these reliefs remains. This means entrepreneurs and investors will pay more tax on qualifying business sales.
April 6 – Work from home tax relief cut
If you work from home, you will no longer be able to claim tax relief from HMRC for extra household costs – such as gas and electricity – from April 6. The work from home allowance in the UK is a flat rate of £6 per week.
April 6 – Two-child benefit cap axed
The two-child benefit cap is being axed from April 6. The two-child benefit cap stops low-income families from claiming further means-tested benefits when they have a third or subsequent child born after April 6, 2017. If your first child was born on or after April 6, 2017, or you have a second child, the extra amount you get from Universal Credit is £292.81 a month per child. This is rising to £303.94 a month from April 2026.
April 7 – Royal Mail stamp price rise
First class stamps will rise by 10p to £1.80 from April 7. The price of a first class stamp was just 64p in 2016 – meaning it will have increased by 181% in the past ten years. Second class stamps are going up by 4p to 91p.
April 13 – Benefits and state pension increase
Welfare payments including Child Benefit and Personal Independence Allowance will rise by 3.8%. The basic standard allowance for Universal Credit will rise by a higher 6.2% – but the health element for new claimants is being cut. Meanwhile, the state pension will increase by 4.8% under the triple lock promise.
