There are several major adjustments to taxpayer liabilities for the new fiscal year 2018/19. Here’s a brief summary •All change for your bank balance and pay packet

Welcome to the new tax year - here's the main changes

The new tax year begins on Friday with a bigger than usual set of changes to income taxes, personal allowances, pensions, buy-to-let taxation and dividend taxation. Here’s what to expect.

Personal allowance

The amount you can earn without paying income tax rises from £11,500 to £11,850, which works out as a tax cut of £70 for most people.

Income tax

The starting point for paying 20% basic rate tax will be £11,850, while 40% tax will start on earnings above £46,350 (up from £45,000).



Scotland

It’s different in Scotland. The £11,850 personal allowance is the same, but the first £2,000 of earnings after that are taxed at 19% rather than 20%. After that, it’s 20% tax until your earnings hit £24,000, when it rises to 21%. Then above £43,430 the rate is 41%. Both have an upper rate above £150,000; in England it’s 45%, in Scotland 46%.

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National insurance

Will be charged at 12% of income on earnings above £8,424, up from £8,164 until you are earning more than £46,350, after which the rate drops to 2%. It’s the same in Scotland.

Auto-enrolment

Pension contributions start racking up from this week. From Friday workers must pay a minimum of 3% of salary into a pension (up from 1%), while the employer contribution rises from 1% to 2%.

Buy-to-let landlords

Will only be able to offset 50% of their mortgage interest when calculating their tax bill, compared with 75% before.

Dividends

Until now you could earn £5,000 in dividends tax-free. This drops to £2,000 for 2018-19.