April is a month of major money changes. Alongside a rise in many consumer bills that we’ve shared throughout the past few months, a raft of measures announced by the government in its October budget will take effect too.
Some have already come into force, such as increases in capital gains tax, while others, like inheritance tax changes, vaping levies and an end to the income tax band freeze, won’t for several years.
Here, we take a look at what’s changing in April.
1. Employers’ National Insurance
National insurance (NI) contributions for employers (not employees) will increase by 1.2 percentage points to 15% from 6 April 2025. The point at which employers start paying NI will fall from ยฃ9,100 a year to ยฃ5,000 a year. At the same time, the government is increasing the Employment Allowance – the amount by which smaller businesses can reduce their national insurance contributions – from ยฃ5,000 to ยฃ10,500.
2. Holiday Lets
From 6 April, the government will abolish the furnished holiday lettings tax regime, removing the tax advantages that landlords who offer short-term holiday lets have over those who provide standard residential properties.
Income and gains from these holiday lets will instead form part of the landlord’s UK or overseas property business.
3. Stamp Duty
First-time buyers now have to pay stamp duty on the value of homes above ยฃ300,000, down from ยฃ425,000, while other movers will see this “nil rate” halve from ยฃ250,000 to ยฃ125,000. The change came into force on 1 April.
4. Minimum Wage
The minimum wage has gone up by 77p (6.7%) to ยฃ12.21 an hour for people aged 21 and over. This is the equivalent of ยฃ1,400 a year for a full-time worker. Workers aged 18 to 20 see their minimum wage increase by ยฃ1.40 (16.3%) to ยฃ10 an hour, or ยฃ2,500 a year for a full-time worker.
Employees under 18 and apprentices see their pay packet increase from ยฃ6.40 an hour to ยฃ7.55.
5. Car Tax
The exemption for zero and low-emission vehicles from vehicle excise duty and the luxury car tax has ended. Electric vehicle (EV) owners now face a duty of ยฃ10 for the first year after a vehicle is registered, and then the standard rate of ยฃ195 for every subsequent year of ownership.
EVs have also become liable for the expensive car supplement, meaning those with a list price in excess of ยฃ40,000 have to pay ยฃ425 as an annual supplement on top of the standard car tax rate in years two to six after a vehicle is first registered.
6. Soft Drinks Levy
The lower rate of the Soft Drinks Industry Levy is going up from 18p per litre to ยฃ1.94 per 10 litres (the equivalent of 19.4p per litre). The higher rate is increasing from 24p per litre to ยฃ2.59 per 10 litres (25.9p).
So you could see some price increases on the shelf.
7. Alcohol Duty
A cut to draught alcohol duty of 1.7% has kicked in – which could make pints 1p cheaper.
8. Business Rates
Business rates relief will fall from 75% to 45% for retail, leisure, and hospitality businesses, which employers have warned could be perilous for some already facing an increase in the minimum wage and national insurance contributions.
9. Non-Doms
The non-domicile tax status – when someone’s permanent home is abroad for tax purposes – will end on 6 April, replaced with a residence-based system.
Non-doms only had to pay UK tax on money earned in the UK, not on money earned in other countries if it isn’t paid into a British bank account.
The new system means all longer-term UK residents will be taxed by the UK on their worldwide income and gains as they arise.
New arrivals in the UK will still receive four years of tax exemption on foreign income and gains.