It pays to be prepared and make a note of the important dates in 2024 that could affect your finances.
From self-assessment deadlines and tax increases to interest rate changes and the state pension rise, here are the key dates you need to know.
Key money dates 2024
1 JANUARY - NEW ENERGY PRICE CAP
The new energy price cap will come into effect on New Year’s Day. Ofgem, the energy regulator, sets a new price cap every three months.
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Ofgem has set the price cap for January to March 2024 at £1,928 per year for typical customers who pay by direct debit. That compares to £1,834 between October and December.
According to the analyst Cornwall Insight, typical energy bills will drop to £1,816 from the start of April 2024, but households will have to wait until July to see a more significant drop to £1,793. Gas and electricity prices are then expected to fall to £1,833 by October 2024.
6 JANUARY - NATIONAL INSURANCE TAX CUT
Chancellor Jeremy Hunt announced a National Insurance (NI) rate cut in his 2023 Autumn Statement.
The 12% NI rate will fall by 2 percentage points to 10% from 6 January, 2024.
This should mean the average worker on a £35,400 salary will save about £450 a year. Anyone earning more than £50,270 will save the maximum of £754 a year.
31 JANUARY – SELF-ASSESSMENT TAX DEADLINE
People who have to file self-assessment tax returns must do so by Wednesday, 31 January, 2024. It’s also the deadline to pay any tax owed from that return.
Self-employed workers are also required to make a payment on account – this is an advance payment towards your next tax bill, based on your previous tax liabilities. The first payment must be made by 31 January.
Bear in mind that payments to HMRC can take a few days, so try and complete your tax return at least a few days ahead of the 31 January deadline. Or better still, get it done now, and then you don’t have it hanging over your head during the Christmas break and into January - which is often the bleakest month of the year.
1 FEBRUARY - FIRST MPC MEETING OF THE YEAR
This is the first meeting of the year for the Bank of England’s Monetary Policy Committee to decide whether the base rate should be altered. After 14 consecutive increases to the base rate, which finally ended in September 2023 when the MPC held rates at 5.25%, rates are widely expected to fall in 2024.
Any drop in the base rate is predicted to happen in the second half of the year, but it will still be interesting to see how the MPC votes, and what the notes of the meeting say, such as what it regards as the biggest economic challenges. The meeting could also set the tone for the year ahead.
MARCH – THE BUDGET
Every year we have at least one big Budget statement delivered by the chancellor. It outlines how well the economy is performing, the financial forecasts for the year ahead as well as any proposed changes to the tax system.
The Budget is usually delivered in March - the last one was delivered by Jeremy Hunt on 15 March, 2023.
5 MARCH: RAIL FARES RISE
Like previous years, the government is freezing rail fares for January and February, meaning fares will officially rise in March 2024. This year, fares rose on 5 March, and it’s likely it will be the same date in 2024.
The government has not yet confirmed how much tickets will go up by - although it has said it wants to cap fare increases “well below inflation”, so will not use the traditionally-used July retail prices index measure of inflation (9%).
However, the Campaign for Better Transport has warned that rail passengers still face the biggest fare hike in decades, of 7.8%, if the government uses the same formula (July’s wage growth figures) as this year to calculate the 2024 increase.
21 MARCH - MPC MEETING
Another meeting by the Bank of England’s MPC, to decide if the base rate should be changed.
APRIL - 15 HOURS FREE CHILDCARE FOR TWO YEAR OLDS
The government’s policy of 15 free hours childcare available for working parents of two-year-olds will kick in this month.
It is part of a wider reform to provide 30 hours free childcare to all under 5s for eligible working parents - rather than just three and four-year-olds, as it is currently. The Treasury said in this year’s spring Budget that this would “help with the cost of living, support education for the youngest children, and remove one of the biggest barriers to parents working”.
The policy is being phased in gradually, with the full reform (30 free hours from nine months to the start of school) in place from September 2025.
1 APRIL - NEW ENERGY PRICE CAP
The energy price cap for the second quarter of the year will come into effect on April Fool’s Day. According to the analyst Cornwall Insight, the cap is predicted to be £1,816 a year for a typical family with average usage. This is a slight decrease from the current October to December cap of £1,923 and will be down from the a decrease on the forecast Q1 cap of £1,996.
1 APRIL – CHANGES TO HOUSEHOLD BILLS
Changes will take place to a range of household bills from the start of April. For example, many broadband and mobile phone suppliers impose price hikes each year that are tied to the rate of inflation. These increases occur even if you are mid-contract.
Water bills are also due to change from April. While inflation remains high, the good news is that some water bills in England and Wales could rise by less than planned next year, as 12 water companies have been hit with a total £114 million penalty for missing targets on pollution, leaks and customer service, which will come off customers’ bills.
And then there is council tax. We don’t yet know the scale of the increases to council tax, however, councils will be able to raise tax by 3% - plus another 2% for social care – without holding a referendum.
Car tax is also set to increase on 1 April.
1 APRIL: NATIONAL LIVING WAGE AND MINIMUM WAGE RISE TAKE EFFECT
Chancellor Jeremy Hunt announced a record increase in the national living wage during his 2023 Autumn Statement.
The hourly rate for people age 21 and over will go up by 9.8% in April, from £10.42 to £11.44.
5 APRIL - END OF TAX YEAR
The 2023-2024 tax year ends on 5 April, so if you’re planning to utilise your entire ISA allowance, the full £20,000 will need to have been paid into your accounts by this date. This includes junior ISAs, which come with a separate annual allowance of £9,000 per tax year.
Remember that the ISA allowance is “use it or lose it” - you cannot roll it over into the next tax year.
Anyone wanting to pay extra into their pension should also try and do this before 5 April. Most people can contribute up to £60,000 to their pension pot each tax year and benefit from tax relief. However, those with an annual income – including salary, and income from savings and investments – of more than £200,000, or those who earn less than £40,000 a year, have a lower pension allowance.
To find out how the pension allowances work, and for information about how to “carry forward” unused allowances into the next tax year, take a look at this article.
6 APRIL - STATE PENSION RISES
The 2024-25 tax year begins on 6 April, and this is a date when increases to various state benefits will kick in.
Pensioners will enjoy another above-average boost to their state pension, with payouts set to rise by 8.5%.
The full new state pension is due to rise to £221.20 per week in 2024, from £203.85. This adds up to £11,502 per year, compared to the current £10,600. Meanwhile, the full basic state pension will rise to £169.50 per week, from £156.20.
6 APRIL - TAX CHANGES
There are a couple of tax changes that will occur at the start of the new tax year. First, the dividend tax-free allowance will be halved from £1,000 to £500. The tax rates on dividend income remain unchanged.
Second, the threshold for paying capital gains tax will also be halved, from £6,000 to £3,000.
Meanwhile, the lifetime allowance will be axed in April (the lifetime allowance charge has already been scrapped, but this last bit of legislation will axe the allowance entirely).
Another technicality for the 2024-25 tax year: those who have “net pay pensions” - which means the saver gets the full amount of tax relief straightaway - but earn under the personal allowance, will get top-up payments. The 2024-25 tax year is the first one this will apply for, but the payments won’t be made until the start of the following tax year.
Perhaps most notably, the biggest difference that people will likely feel is what’s not changing – in other words, the frozen tax thresholds. In years gone by, the tax-free personal allowance often went up each April, but in 2024 it will again be frozen at £12,570. It's due to be held at this level until April 2028. Income tax thresholds will also remain at their current levels.
It’s estimated there will be 2.1 million more higher-rate taxpayers and 350,000 additional-rate taxpayers in five years' time, according to the Office for Budget Responsibility, because of fiscal drag.
The government has also previously announced that the inheritance tax (IHT) threshold will remain frozen at £325,000 until 2027/2028.
Class 2 national Insurance contributions (NICs) for the self-employed are also set to be abolished, while the rate of class 4 NICs will drop from 9% to 8% in April. Both these reforms aim to save around two million self-employed workers an average of £350 a year.
9 MAY - MPC MEETING
Another meeting by the Bank of England’s MPC, to decide if the base rate should change.
20 JUNE - MPC MEETING
Another meeting by the MPC, to decide if the base rate should change. We’re approaching the mid-way point of 2024, and this could be where the committee starts to think seriously about cutting interest rates - according to current predictions.
1 JULY - NEW ENERGY PRICE CAP
The energy price cap for the third quarter of the year will come into effect today. According to the analyst Cornwall Insight, the cap is predicted to be £1,872 a year for a typical family with average usage. This is a slight decrease from the current October to December cap of £1,923, and a decrease on Ofgem's £1,928 price cap that has been set for January to March 2024.
31 JULY – SECOND PAYMENT ON ACCOUNT
The second and final payment on account for the 2023-2024 tax year will have to be paid by self-employed people by the end of July.
1 AUGUST - MPC MEETING
Another meeting by the Bank of England’s MPC, to decide if the base rate should be changed.
14 AUGUST – JULY INFLATION ANNOUNCEMENT
The inflation figure for July is important as it is traditionally used to set the increase in rail fares, which takes place the following year.
SEPTEMBER - 15 HOURS FREE CHILDCARE FROM NINE MONTHS OLD
This is the second stage of the government’s roll-out of free childcare from the age of nine months. In September, the 15 free hours childcare scheme will be extended to working parents with babies aged nine months and over.
19 SEPTEMBER - MPC MEETING
Another meeting by the Bank of England’s MPC, to decide if the base rate should be changed.
1 OCTOBER - NEW ENERGY PRICE CAP
The energy price cap for the fourth quarter of the year comes into effect today. According to the analyst Cornwall Insight, the cap is predicted to be £1,922 a year for a typical family with average usage.
5 OCTOBER – DEADLINE TO REGISTER FOR SELF-ASSESSMENT
If you’re new to self-assessment, this is the deadline to register with HMRC. This could apply to you if, say, you’ve set up a side hustle to earn money in addition to their PAYE job, or made a profit selling cryptocurrency. You could also be newly self-employed or a new landlord renting out property.
16 OCTOBER - SEPTEMBER INFLATION ANNOUNCEMENT
The inflation figure for September is important as it is used when calculating changes to benefits, the state pension and tax credits.
For example, the triple lock means that each year the state pension increases by the largest of the following three figures: 2.5%, the rate of inflation, or earnings growth. It’s the September inflation figure that is used in this comparison.
31 OCTOBER - POSTAL SELF-ASSESSMENT DEADLINE
Almost half a million taxpayers choose to send a paper self-assessment tax return by post, rather than filing it online. If you do this, you must submit it by 31 October.
NOVEMBER - AUTUMN STATEMENT
Effectively a mini-Budget, the Autumn Statement is another chance for the chancellor to outline any upcoming tax changes as well as give updates on the state of the economy. It is usually delivered in November.
7 NOVEMBER - MPC MEETING
The MPC’s penultimate base rate meeting of the year.
19 DECEMBER - FINAL MPC MEETING OF THE YEAR
The final meeting by the Bank of England’s MPC, just before Christmas, to decide if the base rate should be changed.
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