Key dates for your finances in 2024

Inflation may be easing but it is “too early to call” the end of the cost of living crisis, according to the boss of Tesco.

The new year brings with it a host of impending changes which will impact your finances, whether you’re retired or a young worker on minimum wage. State pension rises, TV licence hikes, expanded childcare support and lower tax thresholds are among the financial changes we’ll see happen over the course of 2024.

To help keep on top of the important dates, Telegraph Money has the key changes to be aware of. 

What’s already happened?

Energy price cap rise

Energy bills rose by 5pc in January due to an increase in the energy price cap. This means a typical household will pay £1,928 annually for their energy bills (equal to a £94 hike over the course of a year), according to Ofgem. 

The energy price cap sets a limit on the maximum amount suppliers can charge households in England, Wales and Scotland for each unit of gas and electricity. Energy in Northern Ireland is regulated separately.

The energy price cap is reassessed quarterly, and the new rates are announced in April, July and October.

National Insurance cut

The key measure from last year’s Autumn Statement was a cut to National Insurance. This was brought in on January 6, with the previous 12pc that employees paid on earnings between £12,570 and £50,270 being lowered to 10pc.

The cut benefits 27 million workers, and the Government estimates that basic-rate taxpayers will save £304 on average, while higher-rate taxpayers will save £647 and additional rate taxpayers £707.

Upcoming key dates in 2024

January 31: Self-assessment deadline

This is the final deadline to file tax returns online if you are self-employed or need to declare any income not taxed at source, such as from a rental property or dividends. 

According to its latest count, HM Revenue and Customs is still waiting for 5.7 million people to file their financial information relating to the 2022-23 tax year.

If you don’t submit your form on time, you will be charged £100 plus £10 for each additional day beyond the deadline.

March 3: Rail fare hike

In a blow to commuters, regulated train fares in England will increase by up to 4.9pc.

Season tickets on most commuter journeys are affected, along with some off-peak return tickets on long-distance routes and flexible tickets for travel around major cities.

In the capital, Tube and bus fares will increase by an average of 5.9pc across the Transport for London network.

March 6: Spring Budget

Spending and taxation policy for the year ahead will be outlined by Chancellor Jeremy Hunt in early March. It could be the last fiscal statement before voters go to the polls at the next General Election, which is expected to be in mid-November.

Inheritance tax, income tax cuts and help for first-time buyers are rumoured to be under consideration.

March 23: End to fuel duty freeze

The 5p fuel duty cut has been in place for two years, but is earmarked to end this March.

This measure was introduced in 2022 to maintain the cost of fuel at a time of continued high oil prices. Drivers should expect to pay more to fill up from March 23.

April 1: Free childcare for two-year-olds

Parents with two-year-old children will be able to benefit from 15 hours’ free childcare per week for 38 weeks of the year (during school term time).

Working parents earning between £8,670 and £100,000 a year can register for the scheme ahead of its introduction in the spring. More than 250,000 families are expected to benefit, but there are concerns over a lack of available childcare spaces.

April 1: Various increases to bills

The TV licence fee, currently set at £159, will increase by £10.50 and council tax will likely be hiked by up to 3pc, depending on where you live. Air passenger duty and water bills are also expected to rise. 

April 1: National Living Wage increase 

The minimum wage is to increase by £1 an hour to £11.44. It is currently set at £10.42.

The rise amounts to the biggest cash increase since the minimum wage was created in 1998. According to the Government, the increase will mean a £1,800 pay boost to the average worker.

The age at which workers must be paid the full minimum wage will also drop from 23 to 21. Similar increases will kick in for those aged 18-20, under 18s and apprentices.

April 5: End of the tax year

The end of the tax year marks the deadline to use your savings allowances: £20,000 can be deposited in Isas and most can contribute up to £60,000 into their pension before incurring a tax charge.

April 6: Isa allowances changing 

Rules blocking savers from paying into more than one Isa of the same type will be scrapped.

This means, for example, that you’ll be able to pay into two cash Isas (up to £20,000 in total) in the same tax year.

You’ll also be able to transfer part – rather than all – of your account balance from one Isa provider to another. The Government is also changing the rules so that savers soon will have to be aged 18 or over to open a cash Isa, rather than 16.

April 6: Capital gains and dividends allowances slashed

The tax-free allowance for capital gains will be slashed yet again, dropping from £6,000 to £3,000.

This year’s cut comes after the threshold was dramatically lowered from £12,300 in 2023 as part of a multi-billion pound tax grab.

From April, any share gains over the £3,000 allowance will be taxed at 10pc for basic-rate payers, and 18pc for higher-rate payers. Rates of 28pc and 20pc apply to residential property sales.

The threshold for dividend tax will also be cut from this date, reducing from £1,000 to £500.

April 6: Tax boost for self-employed

Class 2 National Insurance contributions (NICs) paid by self-employed workers will be abolished.

Currently the self-employed pay a flat fee of £3.45 per week on profits over £12,570 a year. This will be scrapped, reducing tax bills for two million workers. The average saving will be £186.

April 8: State benefits to rise

Two days after the new tax year, increases to various state benefits will come into effect.

Millions of retirees will see their state pension rise by 8.5pc as part of the biggest increase on record. The £900 boost means the new full state pension will rise to £11,502 from the current payment of £10,600.

Elsewhere, Universal Credit and pension credit will rise by 6.7pc in line with the CPI recorded in September 2023.

June: Rollout of King Charles III banknotes

New banknotes featuring King Charles are due to enter circulation. Notes with the late Queen’s portrait will still be in use, and there is no set date for when they will be phased out.

July 31: Second payment on account deadline

The deadline for the second and final payment on account for the 2023-2024 tax year for the self-employed will be at the end of July.

August 1: Alcohol price rises?

The Chancellor has frozen alcohol duty on drinks such as beer and wine until August. Following this, prices could again increase unless this is addressed at the Budget.

September 1: Free childcare expanded again

The Government’s childcare support package will expand further – enabling 15 hours of free care a week for working parents (earning between £8,670 and £100,000) of children aged between nine months and two years. Around 640,000 families are thought to be eligible for the support.

October 16: Key inflation figures from September 

These inflation figures are important as they are used to calculate how much benefits and the state pension will rise by in April 2025.

November: Autumn Statement

The Chancellor will use the Autumn Statement – which is effectively a mini Budget – to outline upcoming policy changes. Last year, it was delivered on 22 November, but with a general election potentially coming at around this time, it’s uncertain when it will be held.

December 31: £2 bus fares end

The £2 cap on single bus journeys in England will come to an end. The price cap, which is in operation on some routes and saves passengers an average of 30pc on a ticket, would have been in force for two years by this time.

It was originally set to last for three months, but has been extended multiple times.

When are the Bank Rate announcements in 2024?

The Bank of England base rate, which helps to determine interest rates set by lenders and savings providers, has remained steady at 5.25pc since August last year. Prior to that, it rose 14 consecutive times, having been at a historic low of 0.1pc in 2021.

The Bank’s Monetary Policy Committee – made up of nine decision-makers – meets eight times a year to review the rate, opting to either increase, decrease or keep it level.

Rates are expected to fall at some point in 2024, but this is not likely until inflation meets its 2pc target. Economists at Deutsche Bank predict this will come sooner than previously anticipated, forecasting that inflation (currently 3.9pc) will fall to below 2pc by April or May.

The Bank Rate will be reviewed on the following dates:

• February 1
• March 21
• May 9
• June 20
• August 1
• September 19
• November 7
• December 19