MILLIONS are facing brand new money shake-ups from today.
As the new tax year begins, you should expect to see a few changes to payments including state pension and tax allowance.
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Here are 10 money changes happening todayCredit: Alamy
The tax year runs from April 6 to April 5 – not from January to December like a calendar year.
As it hits every April you’ll get certain allowances, like how much you can earn, save and put into your pension before you start paying tax on it.
You may notice differences in how much tax you have to pay each year as well.
But this year brings a host of new changes including cuts to tax allowances and other freezes.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “It’s going to be a horribly taxing year, as a combination of dramatic cuts to some tax allowances and freezes to others takes a nasty toll.
“There’s the odd glimmer of hope in some of the new pension rules, but whether the changes bring new opportunities or more horrible headaches, the earlier you can take action in the new tax year, the sooner you can protect your money from the clutches of the taxman.”
It can be difficult to figure out exactly what’s changing when, so we’ve created a handy list for you.
Below you’ll find 10 big money changes happening from today, and what they mean for you.
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Boosted benefits and state pension
A pay boost will hit millions as benefits go up by 10.1% in line with inflation for last September.
It means millions of pensioners will get an £870 rise in their state pension payments.
The full state pension rate of £185.15 per week is increasing by £18.70 and pensioners are getting a total of £10,600 a year.
While the basic state pension goes up £14.35 from £141.85 per week to £156.20.
Over the year, that will be an increase of £746.20 to £8,122.40 in total.
Benefits including Universal Credit and Child Benefit will also increase by last September’s inflation rate today.
Read our roundup to check how these are increasing plus what other benefits are included.
Pension annual allowance rise
The pension annual allowance is the maximum amount that you can save into your pension in a year before you get penalised with tax.
It covers all your pension pots including personal, workplace and final salary schemes.
The allowance had been frozen until April 2026 and was set at £40,000 per year, but this has been increased to £60,000 today.
If you bust your allowance, you’ll need to fill in a self-assessment tax return.
Money Purchase annual allowance rise
The Money Purchase annual all …
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