Tax changes ahead in April 2017

Changes to the tax system coming into force for 2017/18 including alterations to car tax, income tax and child tax credit.

The changes to car tax are designed to take into account harm to the environment caused by car fumes. Owners of electric cars and those powered by hydrogen fuel cells will pay no road tax, while low-emission cars with CO2 emissions of less than 99mg/km will be charged £120 for the first year and £140 afterwards. All cars above 99mg/km will pay significantly more.

In areas like Heswall and Clatterbridge, around 87% of people own a car, so Wirral motorists affected by these increases may decide to change their vehicles to more environmentally friendly models.

The personal allowance for income tax rises from £11,000 to £11,500 as of April as well. The 20p tax limit rises to £33.500 and the 40p tax threshold rises from £43,000 to £45,000. The higher tax rate of 45p is paid on incomes over £150,000.

The “family element” child tax credit of £545 a year is being abolished. Child credit of up to £2,780 a year is available depending on the level of family income. For children born after April 6, this credit will only be applied to the first two children of a family.

These tax changes will make some difference to the financial situation of most Wirral residents. If you are concerned about the health of your finances, talk to an independent financial adviser who can give you the up-to-date advice and assistance you need.

The tax treatment is dependent on individual circumstances and may be subject to change in future.

Posted by Mark
20th March 2017


All blogs and news on Endeavour Financial Planning are for information purposes only and are not intended to provide advice. Please seek the advice of a financial advisor before making any financial decisions.

Tax Regulations

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment