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Universal Credit Changes in June 2024
June - Tax credit renewals deadline
A crucial deadline looms for those receiving tax credits, such as Working Tax Credit or Child Tax Credit. The deadline for renewal is typically towards the end of July, but it's essential to act sooner rather than later. Missing this deadline could result in your payments being stopped.
This year, HMRC sent out renewal packs between early May and early June. If you haven't received yours yet, don't panic. Contact HMRC directly through their website or by phone.
Remember, even if your circumstances haven't changed, you still need to renew your tax credits. It's a simple process that can be done online, by phone, or by post. Doing so ensures your payments continue without interruption.
June – Marriage Allowance claims deadline
Married couples and those in civil partnerships have until the end of the tax year to backdate their Marriage Allowance claims. This allowance lets you transfer £1,260 of your Personal Allowance to your higher-earning spouse or civil partner, potentially saving them up to £252 in tax for the 2023-24 tax year.
If you're eligible, you can backdate your claim for up to four years, meaning you could be entitled to a total of £1,224 in tax relief. Claims can be made online via the government's website.
June – Council Tax Rebate deadline approaches
Many households are eligible for a £150 Council Tax Rebate as part of the government's support package to help with rising energy bills. The deadline for claiming this rebate varies depending on your local council, but it's typically towards the end of June.
To find out if you're eligible and how to claim, check your local council's website or contact them directly. Don't miss out on this valuable support if you're entitled to it.
June – Energy Price Guarantee to remain until 2024
The Energy Price Guarantee (EPG), which caps average household energy bills, will remain in place until the end of 2023. This means that, despite wholesale energy prices falling, your bills won't decrease until the new year.
The EPG currently limits typical household energy bills to around £2,500 a year. However, this is just an average, and your actual bill will depend on your usage.
While the EPG provides some stability, it's still important to be mindful of your energy consumption. Simple steps like turning off lights when you leave a room and using energy-efficient appliances can help keep your bills down.
June – Help to Save bonus deadline
If you're eligible for the government's Help to Save scheme, you have until the end of the 2024/25 tax year to open an account and start saving. This scheme allows you to save up to £50 a month and receive a 50% bonus on your savings after two years.
To be eligible, you must be receiving certain benefits, such as Universal Credit or Working Tax Credit. If you're not sure if you qualify, you can check the government's website or contact HMRC.
Opening a Help to Save account is easy and can be done online or through your bank or building society. It's a great way to build up your savings and get a financial boost from the government.
June – Deadline for Self Assessment tax returns
For those who missed the January 31st deadline for filing their 2022-23 Self Assessment tax return, June marks a crucial point. If you haven't filed by now, you'll automatically receive a £100 late filing penalty. However, this is just the beginning.
Further penalties of £10 per day accrue after three months, up to a maximum of £900. If your return is six months late, you'll face an additional penalty of 5% of the tax due or £300, whichever is greater. And if your return is more than 12 months late, you could face another 5% penalty or £300, again, whichever is greater.
It's crucial to file your tax return as soon as possible, even if you can't pay the full amount due. You can set up a payment plan with HMRC to spread the cost. Ignoring the issue will only lead to escalating penalties and potential legal action.
June – Child Benefit changes for high earners
High Income Child Benefit Charge (HICBC) is a tax that affects families where one parent earns over £50,000 per year. The charge is calculated as a percentage of Child Benefit received, increasing gradually with income.
If you or your partner's income exceeds this threshold, you'll need to complete a Self Assessment tax return, even if you don't normally have to. You can choose to stop receiving Child Benefit payments altogether to avoid the charge, but this could affect your State Pension entitlement in the future.
It's important to understand the HICBC rules and how they apply to your situation. You can find more information on the government's website or seek advice from a tax professional.
June – National Insurance contributions rise
From April 2023, National Insurance contributions (NICs) increased by 1.25 percentage points. This was part of the government's plan to fund health and social care.
The increase affects both employees and employers, with the additional contributions going towards the new Health and Social Care Levy. However, from July 2023, the levy was removed and NICs rates returned to their 2021-22 levels.
It's essential to be aware of the NICs changes and how they impact your take-home pay. You can check your payslip to see how much you're paying in NICs. If you're self-employed, you'll need to factor the changes into your tax calculations.
June – Universal Credit childcare costs change
Parents claiming Universal Credit can get help with childcare costs. The amount you can claim depends on your circumstances, such as the age of your children and your work hours.
However, there are limits to how much you can claim. The maximum amount for one child is £646.35 per month, and for two or more children, it's £1108.04 per month. These limits haven't changed since 2005, despite rising childcare costs.
It's important to be aware of the childcare costs limits and how they affect your Universal Credit payments. You can find more information on the government's website or seek advice from a benefits advisor.
June – State Pension age review
The government is currently reviewing the State Pension age, with the aim of ensuring it remains affordable and sustainable in the long term. The current State Pension age is 66 for both men and women, but it's set to rise to 67 between 2026 and 2028.
The review is considering whether the State Pension age should rise further and faster, potentially reaching 68 sooner than planned. This could have a significant impact on those approaching retirement age.
It's important to keep up to date with the State Pension age review and any proposed changes. This will help you plan for your retirement and ensure you have enough income to support your lifestyle.
June – Minimum Wage increase for apprentices
From April 1st, 2023, the National Minimum Wage for apprentices increased to £5.28 per hour. This rise applies to apprentices aged 16 or over and in their first year of apprenticeship. Those aged 19 or over who have completed their first year are entitled to the National Minimum or Living Wage for their age.
This increase is part of the government's commitment to support young people entering the workforce and ensure they receive fair pay. It's important for both apprentices and employers to be aware of the new minimum wage rates and ensure they comply with the law.
June – Tax-Free Childcare scheme deadline
The Tax-Free Childcare scheme is a government initiative that helps working families with their childcare costs. For every £8 you pay into your Tax-Free Childcare account, the government will top it up with £2, up to a maximum of £2,000 per child per year.
To be eligible, you must be working and earning a certain amount, and your child must be under 12 (or under 17 if they have a disability). You can use the money to pay for approved childcare, such as nurseries, childminders, and after-school clubs.
The deadline for applying for Tax-Free Childcare is usually the end of the tax year, but it's worth checking the government's website for the latest information. If you're eligible, it's a great way to save money on your childcare costs.
June – Pension Lifetime Allowance review
The Pension Lifetime Allowance (LTA) is the total amount you can save into your pension without incurring a tax charge. The current LTA is £1,073,100, but it's been frozen until 2026.
The government is currently reviewing the LTA, with some speculation that it could be increased or even abolished altogether. This would be welcome news for those with large pension pots who are currently facing hefty tax bills.
It's important to stay informed about any changes to the LTA, as it could significantly impact your retirement planning. You can find the latest information on the government's website or seek advice from a financial advisor.
June – Personal Savings Allowance reminder
The Personal Savings Allowance (PSA) lets you earn a certain amount of interest on your savings tax-free each year. The amount you can earn depends on your income tax band.
Basic-rate taxpayers can earn £1,000 tax-free, higher-rate taxpayers can earn £500, and additional-rate taxpayers don't get a PSA. If you earn more interest than your PSA allows, you'll need to pay tax on the excess.
It's important to be aware of your PSA and how much interest you're earning on your savings. You can check your bank statements or online banking to track your interest income. If you're unsure, you can contact your bank or building society for advice.
June – Deadline for claiming Marriage Allowance back payments
If you're eligible for Marriage Allowance, you can backdate your claim for up to four years. However, you must do so by the end of the tax year to avoid missing out on potential tax savings.
Marriage Allowance is a tax break for married couples and those in civil partnerships where one partner earns less than the Personal Allowance. It allows you to transfer £1,260 of your Personal Allowance to your higher-earning spouse or civil partner, potentially reducing their tax bill by up to £252 per year.
To claim Marriage Allowance, you can apply online via the government's website. It's a simple process that could save you hundreds of pounds in tax.
June – Student loan repayment threshold changes
The repayment threshold for student loans is the amount you need to earn before you start making repayments. The threshold varies depending on when you started your course and where you live.
For example, the current threshold for Plan 2 loans (for those who started their course on or after 1 September 2012) is £27,295 per year. This means you only start making repayments when your income exceeds this amount.
June – Deadline for Marriage Allowance claims
If you're married or in a civil partnership and one of you earns less than the Personal Allowance, you could be eligible for Marriage Allowance. This allows you to transfer £1,260 of your Personal Allowance to your higher-earning spouse or civil partner, potentially reducing their tax bill by up to £252 per year.
The deadline for claiming Marriage Allowance for the current tax year is 5 April 2025. However, you can backdate your claim for up to four years, meaning you could be entitled to a total of £1,224 in tax relief.
To claim Marriage Allowance, you can apply online via the government's website. It's a simple process that could save you hundreds of pounds in tax.
June – Energy Bill Support Scheme final payments
The Energy Bill Support Scheme (EBSS) provided households with a £400 discount on their energy bills over the winter of 2023-24. The discount was paid in six monthly instalments of £66 or £67, starting in October 2023.
The final payment of the EBSS was made in March 2024. If you haven't received all your payments, you should contact your energy supplier as soon as possible.
While the EBSS has now ended, the Energy Price Guarantee (EPG) remains in place until the end of 2023. This caps average household energy bills at around £2,500 per year, providing some relief from rising energy costs.
June – Universal Credit changes for self-employed claimants
The Minimum Income Floor (MIF) is a rule that applies to self-employed Universal Credit claimants. It assumes that you earn at least the National Minimum Wage for your age and hours worked, even if your actual earnings are lower.
The MIF was temporarily suspended during the pandemic, but it has now been reinstated. This means that self-employed claimants who are earning less than the MIF may see their Universal Credit payments reduced.
If you're self-employed and claiming Universal Credit, it's important to be aware of the MIF and how it could affect your payments. You can find more information on the government's website or seek advice from a benefits advisor.
June – Council Tax Reduction scheme review
Council Tax Reduction (CTR) is a scheme that helps people on low incomes pay their Council Tax. The amount of reduction you get depends on your income, savings, and circumstances.
The government is currently reviewing the CTR scheme, with a view to making it fairer and more effective. The review is considering a range of options, such as simplifying the eligibility criteria and increasing the amount of support available.
If you're struggling to pay your Council Tax, it's worth checking if you're eligible for CTR. You can find more information on your local council's website or contact them directly for advice.
June – Renters' Reform Bill updates
The Renters' Reform Bill is a proposed piece of legislation that aims to improve the rights and conditions of tenants in the private rented sector. The bill proposes a range of measures, such as abolishing "no-fault" evictions, introducing a Decent Homes Standard, and giving tenants more power to challenge unfair rent increases.
The bill is currently in the early stages of the legislative process, but it has already generated significant debate and discussion. If passed, it could have a major impact on the private rented sector.
It's important for both landlords and tenants to stay informed about the progress of the Renters' Reform Bill and any potential changes it could bring. This will help you understand your rights and responsibilities and make informed decisions about your housing situation.
June – Cost of Living Payments
Throughout the year, the government has been providing Cost of Living Payments to help households cope with rising prices. These payments are targeted at those on means-tested benefits, such as Universal Credit, Pension Credit, and Tax Credits.
The final Cost of Living Payment for the 2023-24 financial year was made in March 2024. However, the government has announced further payments for the 2024-25 financial year, with the first instalment due in the spring of 2024.
The exact amount and eligibility criteria for the new Cost of Living Payments have not yet been confirmed. However, they are expected to be similar to the previous payments, with those on the lowest incomes receiving the most support.
It's important to be aware of the Cost of Living Payments and check if you're eligible. You can find more information on the government's website or contact your local council for advice.
June – Council Tax bills due
For most households, Council Tax bills are due in April each year. However, if you pay your bill in 10 monthly instalments, your final payment for the 2023-24 financial year will be due in January 2024.
If you're struggling to pay your Council Tax bill, you should contact your local council as soon as possible. They may be able to offer you a payment plan or other support.
You could also check if you're eligible for Council Tax Reduction, a scheme that helps people on low incomes pay their Council Tax. You can find more information on your local council's website or contact them directly for advice.
Conclusion
June 2024 is a month filled with significant financial changes that could impact your wallet. From the introduction of new King Charles banknotes to changes in benefit rates and tax deadlines, it's crucial to stay informed and plan accordingly.
Whether you're a homeowner, renter, parent, or retiree, there's something in this month's financial landscape that could affect you. By understanding these changes and taking appropriate action, you can ensure your finances remain on track and avoid any unpleasant surprises.
Remember, staying informed is key to navigating the ever-changing financial landscape. Keep an eye on government announcements, check your local council's website for updates, and seek advice from financial professionals if needed. By doing so, you can make informed decisions and ensure your financial well-being.
