April marks a significant period for financial matters. As the tax year closes, various personal allowances like ISAs and pension contributions are on the verge of resetting. However, the downside is that this time of year typically sees a surge in bills, impacting households with multiple cost hikes.
In April, the minimum wage is set to increase for millions of workers. Individuals aged 21 and above will witness a rise from £12.21 to £12.71 per hour, while those aged 18 to 20 will experience an increase from £10 to £10.85 per hour. For individuals under 18 or apprentices, the minimum wage will go up from £7.55 to £8 per hour.
Council tax bills are also scheduled to escalate in April, with most local authorities in England implementing a 5% rise. Any larger increases require a referendum, but some councils have obtained approval for higher increments. The average band D council tax bill in England for 2026/27 is anticipated to reach £2,392.
Starting in April, the TV license fee will climb from £174.50 to £180. A TV license is mandatory for viewing or recording live TV or accessing content on the BBC iPlayer. Notably, for other streaming services, a TV license is unnecessary if the content is not live.
In England and Wales, water bills are set to climb by an average of £33 per year, equating to a 5.4% increase. Ofwat has authorized companies to raise average bills by 36% over five years, leading up to 2030.
For vehicles registered post-April 2017, the standard road tax rate will rise from £195 to £200. Pre-April 2017 registered vehicles will also face increased car tax rates, including a rise in the first-year “showroom” tax.
From April onwards, most mobile and broadband providers will boost bills by £1 to £4 monthly, translating to an annual increase of up to £48. Regulations now prohibit telecom firms from tying mid-contract price rises to inflation, necessitating clear communication to customers about upcoming plan cost adjustments.
NHS dental charges in England will see a 1.7% upsurge from April 1. The cost of Band 1 care, covering routine check-ups and similar services, will rise to £27.90, while Band 2 care, encompassing fillings and extractions, will cost £76.60.
Air Passenger Duty, an additional tax on all flights, is slated to increase by 15% from April 1. The hike will result in higher fees for economy short-haul, medium-haul, and long-haul flights.
The Ofgem energy price cap for the typical dual fuel household will decrease from £1,758 to £1,641 in April. Nonetheless, energy experts anticipate a substantial rise in the cap by summer, with forecasts suggesting an increase to £1,973 annually for a standard household due to escalating gas prices amid Middle East conflicts.
The current tax year concludes on April 5, emphasizing the importance of utilizing tax allowances before they reset in the new tax year commencing on April 6. Notable allowances include a £20,000 ISA limit and a £60,000 cap on pension contributions before tax implications kick in.
Starting April 6, sole traders and landlords earning over £50,000 annually must maintain digital records and submit tax updates quarterly via Making Tax Digital-compliant software.
Changes to agricultural and business property reliefs for Inheritance Tax will be enforced on April 6, introducing a £2.5 million cap before Inheritance Tax applies. Assets exceeding this threshold will incur a 50% tax relief, with the standard Inheritance Tax rate remaining at 40%.
The Dividend Tax rates are set to rise from 8.75% to 10.75% for basic rate taxpayers and from 33.75% to 35.75% for higher rate taxpayers starting April 6. Dividend distributions from companies to shareholders will be subject to these revised rates.
Effective April 6, the Capital Gains Tax rate applicable to Business Asset Disposal Relief and Investors’ Relief will increase from 14% to 18%. The £1 million lifetime limit for these reliefs will remain, resulting in higher tax liabilities for entrepreneurs and investors on qualifying business sales.
From April 6 onwards, individuals working from home will no longer qualify for tax relief on additional household costs like gas and electricity. The UK’s work from home allowance will stand at a flat rate of £6 per week.
Welfare payments, including Child Benefit and Personal Independence Allowance, will undergo a 3.8% increase. Universal Credit’s basic standard allowance will rise by 6.2%, while the health element for new claimants will be reduced. The state pension will see a 4.8% boost as part of the triple lock guarantee.
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