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DWP and HMRC Announce April Benefit Changes: One Payment Axed

Unknown economics, fiscal policy, money, personal finance saving spending, taxes

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 In April, financial matters take centre stage as the start of the new tax year arrives, bringing about higher bills alongside improved benefits provided by the Department for Work and Pensions.


 A new
 Ocean Finance
 A survey of 1,500 UK adults carried out in March 2025 revealed that an alarming 73% are worried about affording their basic expenses this spring. Additionally, one in four respondents (26%) reported feeling so overwhelmed by prospective cost increases that they avoid checking their account statements altogether.


 Fiona Peake, the consumer money specialist from
 Ocean Finance
 , has pointed out key dates in April concerning DWP, HMRC, and state pensions that might impact your financial situation.

<h3>
 Key April dates for DWP, HMRC, and state pensions
</h3>

 On April 1st, the National Living Wage is set to experience a substantial hike, as stated by Fiona: “A considerable number of employees will benefit from an increased salary starting this April due to the National Living Wage going up by 77 pence to reach £12.21 per hour for individuals who are 21 years old and above. Workers within the age group of 18 to 20 can expect a jump of £1.40, taking their rate to £10 per hour. Apprentices too will receive a raise of £1.15, setting their hourly wage at £7.55. Although such increments are positive news, they might be overshadowed by the continuous escalation in living expenses—particularly energy charges and municipal taxes.”

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 On April 1, families throughout the nation will also be preparing for an increase in Council Tax.


 Fiona cautioned, “On average, council tax bills are set to increase by nearly 5%. However, the precise hike depends on both your local authority and the specific property banding. Should you have concerns regarding your bill, use the government’s online service to verify your property banding and ensure accuracy in billing. Additionally, explore potential discounts or exemptions.”


 By April 1, water charges are scheduled to increase sharply.


 Fiona warned, “The water charges are set to increase by £27.40, making the typical yearly expense amount to £473. It’s advisable to verify whether installing a water meter might be more economical for you. Numerous water suppliers provide complimentary water-efficient gadgets; thus, take some time to explore what options they have that can assist in cutting down your water consumption and possibly decreasing your expenses.”


 The price for viewing TV will also increase starting April 1st.


 Fiona suggested: "Starting April 1st, the cost of your TV license will go up by £5 to £174.50. However, specific categories might be entitled to reductions. Individuals above 75 years old and claiming pension credit can obtain a complimentary TV license, whereas people with visual impairments can receive a 50% discount. Taking advantage of these TV licensing discounts could significantly lower expenses if you meet the criteria—don’t forget to apply for all applicable rebates."


 Drivers will also face tighter finances when vehicle taxes increase on April 1st.


 Fiona pointed out: "The road tax will go up by around £30 annually on average, even for those who own electric vehicles, as they too will see an increase in fees. It’s advisable to find out exactly how much extra you’ll have to fork out based on what kind of car you drive."


 The tax year concludes on April 5, as pointed out by Fiona regarding a crucial date for British financial matters. She explained, "April 5 signifies the last opportunity to utilize your ISA allowance. Regardless of whether you possess an individual or junior ISA, this presents a prime chance to enhance your savings without taxation ahead of the deadline."


 She subsequently warned of the approaching deadline forState Pension enhancements: “Should you lack some National Insurance contribution records, you may purchase additional years to increase yourstate pension. However, act quickly—the window closesafterApril 5th; post that date,you willonlybeabletotopupcontributionsforthe precedingsixyears.”


 Concerning alterations to tax credits, Fiona cautioned: “On April 5th, the current tax credit scheme will conclude, requiring those affected to transition to Universal Credit instead. Individuals failing to make this changeover will cease to receive their financial assistance. Ensure you reply to the notification sent out by the Department for Work and Pensions regarding your move. Should you have questions about how to proceed or require additional help, reach out to them directly.”


 Regarding companies, she highlighted an impending rise in expenses: "Starting April 6th, business owners will encounter higher National Insurance contributions, increasing from 13.8% to 15%. Additionally, the threshold for these payments will decrease, potentially impacting both enterprises and their staff members."


 Finally, Fiona had some uplifting information for senior residents: "There’s good news for retirees as state pensions will go up by 4.1% starting from 6 April, providing an additional £472 per year. This boost is part of the government's triple lock commitment, ensuring that pensions increase according to inflation rates, average earnings, or at least 2.5%, depending on which figure is greatest."


 On April 6th, the Help to Save Scheme will be broadened, just as Fiona detailed: “Starting from April 6th, the Help to Save programme will extend eligibility to encompass all working individuals receiving Universal Credit. The initiative enables participants to save money alongside earning an additional 50 pence for each pound saved, potentially offering a valuable opportunity for people with lower earnings to establish some financial security.”


 On April 7, the benefits system will receive an uplift, according to Fiona’s statement: “Benefit rates along with Universal Credit payments will go up by 1.7% starting from April 7. This enhancement will be seamlessly integrated into your payments, offering additional assistance to those facing the greatest challenges.”

DWP and HMRC Announce April Benefit Changes: One Payment Axed

Unknown economics, fiscal policy, money, personal finance saving spending, taxes

In April, financial matters take centre stage as the start of the new tax year arrives, bringing about higher bills alongside improved benefits provided by the Department for Work and Pensions. A n…

Electric Vehicle Owners Ditch Gas: How States Are Adapting to Fund Roads and Bridges

Unknown electric cars, highways, roads, taxes, transportation

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 PORTLAND, Ore. (AP) — The pothole near Timothy Taylor's residence was so deep that he could hear the thud of vehicles striking it even from within his home.

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 The person living in Portland, Oregon, could understand the struggles of those drivers; he was aware enough to steer clear of the potholes in his area, yet a different one ruined the suspension of his vehicle at a cost of $1,000.

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 "Hearing that terrible noise when your car hits the ground is absolutely dreadful," he commented.


 Oregon’s transportation authorities warn that without additional funding, locals such as Taylor might experience a deterioration in road, highway, and bridge conditions beginning this year. However, income from gasoline taxes collected at fuel stations is expected to drop as more individuals switch to alternative modes of transport.
 electric and fuel-efficient cars
 , compelling authorities to seek out innovative methods to finance transport infrastructure.


 States such as Oregon, which have ambitious climate targets, encounter a dilemma: While electric vehicles (EVs) can aid in decreasing emissions from the transportation sector—the biggest contributor of greenhouse gases in the country—they also result in reduced gasoline tax income for governmental budgets.


 We currently face a situation where we aim to tackle fuel consumption and reduce dependence on fossil fuels and internal combustion engines," stated Carra Sahler, director of the Green Energy Institute at Lewis & Clark Law School. "However, we also require funding for maintaining the road infrastructure that electric vehicles will rely on.

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 The income from gas taxes is expected to decrease.


 According to the National Association of State Budget Officers, motor fuel taxes represent the biggest contributor to transportation funding at the state level.
 latest document on government spending
 However, the funds they generate have decreased: The organization discovered that gas taxes contributed 41% of transportation revenue in fiscal year 2016, down from approximately 36% in fiscal year 2024.


 In California, where zero-emission vehicles made up approximately
 25% of vehicle purchases
 last year,
 legislative analysts predict
 Fuel tax revenues are expected to drop by $5 billion—or 64%—by 2035 under a scenario where the state achieves its climate objectives. California and Oregon are included in several states mandating that all new passenger cars must be zero-emission vehicles by 2035.

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 The decreasing revenue pattern has become evident in Pennsylvania, where gas tax revenues reportedly fell by an estimated $250 million last year compared to 2019, as stated by the state’s authorities.
 independent fiscal office
 .


 Rising inflation has similarly increased the expense of transportation resources, intensifying financial worries.


 What's happening in Oregon at the moment?


 The Oregon Department of Transportation — pointing to factors like inflation, projected decreases in gas tax revenue, and specific spending constraints — estimates a funding gap exceeding $350 million for the upcoming budget period.

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 This might result in reduced winter snow removal services and less road resurfacing and painting, along with potential job losses for up to 1,000 transportation workers.


 Republican legislators argue that the problem with gas tax revenue has been worsened by the department’s poor financial management.
 An audit
 Released in January revealed that the department had overestimated its income for the present budget period by more than $1 billion and did not adequately monitor specific funds.


 "It truly comes down to ensuring that the current funds allocated to the department are utilized in an efficient and effective manner," stated State Senator Bruce Starr, who serves as the GOP co-vice chairman of the Joint Transportation Committee.

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 In what ways are governments increasing financing for transportation?


 In an effort to recover lost income, 34 states have increased their gasoline tax rates since 2013, as reported by the National Conference of State Legislatures. The Golden State leads with a total charge exceeding 69 cents per gallon once additional levies are included, whereas Alaska maintains the lowest rate at just 9 cents per gallon, based on data provided by the U.S. Energy Information Administration. Notably, Oregon was the pioneering state to introduce such taxation back in 1919 and currently imposes a levy of 40 cents per gallon.

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 The federal gas tax of 18 cents per gallon, which has not been modified for inflation, hasn't seen an increase in more than thirty years.

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 In Oregon, where there is no sales tax and
 Tolling has faced strong resistance.
 , legislators are discussing subsequent actions.

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 Oregon is one of the states that has already increased the registration charges for electric vehicles.

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 Other states have implemented measures like adjusting their gas tax according to inflation or imposing taxes on EV charging stations.

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 To strengthen transportation funds, some individuals have rearranged their budgets. In Michigan, where Governor Gretchen Whitmer initially won her election with the slogan
 “Fix the Damn Roads,”
 A portion of revenue generated from marijuana taxes and individual income taxes currently contributes to funding transportation projects. In Connecticut, the proceeds from sales tax have begun to surpass those from gasoline taxes in terms of financial contributions to their specific transportation fund.
 A fiscal report for 2024 indicates.

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 Another idea that might offer a sustainable resolution involves what are commonly referred to as a
 road user charge
 With this setup, motorists pay an amount that depends on how far they drive.


 In 2023, Hawaii set up a
 road usage charge program
 For electric vehicle (EV) drivers, this system will begin phasing in starting in July. By 2028, all EV drivers will be automatically included, with their odometers checked during yearly vehicle inspections.


 In addition to these, three more states—Oregon, Utah, and Virginia—have implemented optional road usage fee initiatives. Motorists may choose to utilize GPS technology for monitoring and reporting the distance they travel.

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 ___


 The title of the National Association of State BudgetOfficers has been updated to include the word "State."


 Claire Rush, The Canadian Press

Electric Vehicle Owners Ditch Gas: How States Are Adapting to Fund Roads and Bridges

Unknown electric cars, highways, roads, taxes, transportation

PORTLAND, Ore. (AP) — The pothole near Timothy Taylor's residence was so deep that he could hear the thud of vehicles striking it even from within his home. The person living in Portland, Oregon, c…

41 U.S. States Where Social Security Is Tax-Free in 2025

Unknown retirement, social security, social welfare, tax policy and law, taxes

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 Social Security holds significant importance for numerous Americans.
 retirement
 In reality, 40% of Americans aged 65 and above depend on Social Security for more than half of their income.
 according to the AARP
 Moreover, the location where you reside can significantly impact the amount of your Social Security check that you actually get to retain.


 
 Be Aware:
 8 Frequent Errors Retirees Commit When Handling Their Social Security Payments
 


 
 Check Out:
 4 Minimal-Risk Strategies To Grow Your Retirement Fund in 2025
 


 Up to 85% of your Social Security benefits may be liable for federal tax based on your income level, and additionally, some states might impose their own income taxes on these benefits. The good news is that not all states do this.
 tax Social Security
 will shrink, with just nine expected to follow suit in 2025.


 "The roster of states that don’t impose taxes on Social Security is significantly more extensive than those that do," stated Brian Kuhn CFP, CLU, SVP and financial advisor.
 Wealth Enhancement Group
 And every state establishes its own regulations, which can vary over time, as has been seen lately in Missouri and Nebraska.


 In 2024, Missouri and Nebraska opted to eliminate taxes on Social Security benefits. Kansas followed suit halfway through the year after signing relevant legislation, making similar changes.
 The state will no longer tax Social Security moving forward.
 .


 Making passive income does not have to be complicated.
 You can begin this week.

<h2>
 Just 9 States Will Impose Taxes on Social Security in 2025
</h2>

 In 2025, only nine states will impose taxes on Social Security benefits. These states are:

<ul>
 <li>
 Colorado
 </li>
 <li>
 Connecticut
 </li>
 <li>
 Minnesota
 </li>
 <li>
 Montana
 </li>
 <li>
 New Mexico
 </li>
 <li>
 Rhode Island
 </li>
 <li>
 Utah
 </li>
 <li>
 Vermont
 </li>
 <li>
 West Virginia
 </li>
</ul>

 Kansas has been removed from this list, and West Virginia is gradually eliminating Social Security taxes, with no state income tax on Social Security beginning in 2026.


 "Every state includes tax rules that might offer deductions for people under specific income levels or age limits, which makes each one distinct," Kuhn explained.


 
 Learn More:
 I'm Retired and I Regret Taking Social Security at Age 70 — Here Are the Reasons
 

<h2>
 Many states will not levy taxes on Social Security benefits in 2025.
</h2>

 A majority of states, specifically 41 along with Washington, D.C., will not impose taxes on your
 Social Security benefits
 In 2025, according to existing legislation.


 These states are:

<ul>
 <li>
 Alabama
 </li>
 <li>
 Alaska
 </li>
 <li>
 Arizona
 </li>
 <li>
 Arkansas
 </li>
 <li>
 California
 </li>
 <li>
 Delaware
 </li>
 <li>
 Florida
 </li>
 <li>
 Georgia
 </li>
 <li>
 Hawaii
 </li>
 <li>
 Idaho
 </li>
 <li>
 Illinois
 </li>
 <li>
 Indiana
 </li>
 <li>
 Iowa
 </li>
 <li>
 Kansas
 </li>
 <li>
 Kentucky
 </li>
 <li>
 Louisiana
 </li>
 <li>
 Maine
 </li>
 <li>
 Maryland
 </li>
 <li>
 Massachusetts
 </li>
 <li>
 Michigan
 </li>
 <li>
 Mississippi
 </li>
 <li>
 Missouri
 </li>
 <li>
 Nebraska
 </li>
 <li>
 Nevada
 </li>
 <li>
 New Hampshire
 </li>
 <li>
 New Jersey
 </li>
 <li>
 New York
 </li>
 <li>
 North Carolina
 </li>
 <li>
 North Dakota
 </li>
 <li>
 Ohio
 </li>
 <li>
 Oklahoma
 </li>
 <li>
 Oregon
 </li>
 <li>
 Pennsylvania
 </li>
 <li>
 South Carolina
 </li>
 <li>
 South Dakota
 </li>
 <li>
 Tennessee
 </li>
 <li>
 Texas
 </li>
 <li>
 Virginia
 </li>
 <li>
 Washington
 </li>
 <li>
 Wisconsin
 </li>
 <li>
 Washington, D.C.
 </li>
 <li>
 Wyoming
 </li>
</ul>
<h2>
 How Much do Retirees Save on Social Security Taxes in Those States?
</h2>

 Kuhn pointed out that you can calculate how much you’re saving on taxes — assuming you live in a state that does not tax Social Security benefits — by looking up the effective rate of tax you paid to your state for all taxed income sources and applying that to your total Social Security benefits.


 "For instance, if your effective tax rate in your state was 5% and you received $30,000 in Social Security benefits, this would result in savings of $1,500," explained Kuhn.


 This rule, however, doesn’t cover every scenario. Even within states where Social Security income is taxable, not everybody faces the complete tax burden. Take Colorado as an instance; people aged 65 years and above could exempt federal taxes on their Social Security from state taxation starting in 2022. By 2025, this total exemption will extend to those between 55 and 64 years old whose yearly adjusted gross incomes do not exceed $75,000 individually or $95,000 collectively when married and filing jointly.


 Therefore, it's crucial to examine the particular regulations of your state along with your individual tax circumstances.


 Nevertheless, when looking at the overall picture, the savings accumulated by retirees who do not pay taxes on their benefits are quite remarkable.


 “For example, in Missouri, retirees stand to collectively save about $309 million annually,” stated Jeff Rose, CFP, who is the founder of
 Good Financial Cents.
 In Nebraska, the amount is around $17 million. This significant sum stays with retirees rather than getting absorbed by state taxes.


 
 Jake Safane
 were involved in the research and writing of this piece.
 


 
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 The piece initially surfaced on
 :
 41 States That Don't Impose Taxes on Social Security Benefits in 2025

41 U.S. States Where Social Security Is Tax-Free in 2025

Unknown retirement, social security, social welfare, tax policy and law, taxes

Social Security holds significant importance for numerous Americans. retirement In reality, 40% of Americans aged 65 and above depend on Social Security for more than half of their income. accord…

How to Slash Your Company Car Tax Bill in the UK

Unknown business, cars, money, personal finance taxes, taxes

<div>
 
 To misquote an age-old adage, two things are certain in life: death and
 company car tax
 . You cannot evade the initial cost, and no matter how much effort you put into avoiding the secondary one, you will ultimately have to pay something.
 
 
 Certainly, this presupposes that you have access to a company vehicle; however, considering approximately 700,000 individuals currently benefit from such an arrangement, the likelihood seems quite substantial.
 
 
 For the tax authorities, a company car is like a golden goose: in the fiscal year 2021/22, the overall taxable amount from company car benefits reached £3.95 billion. Nevertheless, as another adage goes, the times they are a-changing.
 
 
 Two words:
 electric cars
 These attract significantly lower levels of taxation compared to petrol and diesel vehicles, making them extremely popular among company car drivers.
 
 
 For instance, during the tax year 2021/22, the count of beneficiaries was
 company cars
 With CO2 emissions of 75g/km or lower, there were 243,000 vehicles, up from 137,000 in the prior fiscal year, and fully electric cars made up 17% of vehicle beneficiaries. This data is from three years back, after which the share of such vehicles has continued to change.
 company EVs
 has surged significantly due to their rising popularity and schemes like salary sacrifice.
 
 
 To put it briefly, the tax authorities are facing financial losses, yet they aren’t ready to surrender just yet. Therefore, here’s how you can exit this situation still fully dressed metaphorically speaking.
 
 <h2>
 What does "company car" mean?
 </h2>
 
 This is a vehicle provided by your employer alongside your regular pay, allowing you to utilize it both for personal trips and work-related travel. Personal use encompasses daily commutes.
 
 <h2>
 What does company car tax entail?
 </h2>
 
 It’s a levy on a perk, specifically a company car. While you might consider the vehicle distinct from your wages, from HMRC's perspective it's just another type of compensation—hence subject to taxation. This is precisely why they refer to it as Benefit-In-Kind tax.
 
 <h2>
 What is the method for calculating company car tax?
 </h2>
 
 The tax calculation hinges on the sum of the car’s listed price inclusive of VAT along with additional features (referred collectively as the P11d value). This total figure is then adjusted using the vehicle's officially recorded CO2 emission levels stated as a percentage—termed the BIK rate. By multiplying this outcome by the individual's income tax bracket, one arrives at the taxable amount that the employee needs to cover for their company car usage.
 
 
 The BIK rates vary between a maximum of 37% for cars releasing over 170g/km CO2 and a minimum of 2% for zero-emission vehicles. In the case of hybrid models, their electric-only driving range influences these percentages as well. Additionally, an extra charge of 4% is applied to diesel-powered vehicles failing to meet the stringent RDE2 emission criteria.
 
 
 
 Example:
 
 
 
 The P11D valuation for the vehicle stands at £20,000. The CO2 emission level is recorded as 95 grams per kilometre. It runs on petrol fuel. The Benefit-in-Kind (BIK) percentage assigned to this car is 24%. If we consider your individual income tax bracket which is set at 20%, then the calculated BIK amount based on the P11D price would be £4,800. Consequently, the taxable sum you must pay annually equates to £960, translating into a monthly figure of £80.
 
 <h2>
 What benefits does having a company car offer?
 </h2>
 
 Despite covering the taxes, an employee provided with a company car still ends up financially ahead compared to someone purchasing their vehicle using after-tax earnings. For instance, they would struggle to find a new car costing £80 per month through personal means alone.
 
 <h2>
 What steps can I take to lower my company car tax liability?
 </h2>
 
 <img data-document-id="cms/api/amp/image/BB1nj7pk" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1nj7pk.jpg"/>
 
 
 
 Choose an EV
 
 
 
 HMRC has spent the past 20 years using company car tax to incentivise low-CO2 vehicles, and there's none lower than an electric car.
 
 
 Until April 2025 electric cars (rated at 0g/km CO2) are taxed based on 2% of their P11d price, whereas even the most efficient petrol and diesel models start at 25%. That’s usually enough to reduce your tax bill by 90%.
 
 
 For context, a 20% taxpayer in a £30,000 Vauxhall Astra GS Line diesel would pay around £158 in benefit-in-kind per month, whereas their boss on a 40% income tax band would pay just £83 for a £120,000 BMW iX M60.
 
 
 It’s hardly surprising that battery-electric has become the most popular powertrain type for new fleet lease cars, according to the British Vehicle Rental and Leasing Association (BVRLA).
 
 
 
 Or choose a hybrid
 
 
 
 If you are not ready to ditch combustion engines completely, the BIK rates also heavily incentivise plug-in hybrids with the longest electric range – and this can offset their higher list price.
 
 
 For example, the
 Toyota RAV4
 Plug-in has an electric-only range of 46 miles, so it falls into the 8% BIK band, whereas the
 Ford Kuga
 2.5 PHEV ST-Line X Edition travels up to 35 miles on a full charge and is taxed at 12% of the list price. Despite the Toyota’s £4500 list price disadvantage, drivers will pay around 25% less in tax than they would on the Ford.
 
 
 
 Be selective with options
 
 
 
 In 2017, Europe’s automotive industry switched to a new fuel efficiency test, catchily known as the worldwide harmonised light vehicles test procedure, or WLTP.
 
 
 Alongside tougher test conditions, it produces more granular data, including recognising differences between trim levels and the effects of optional equipment on efficiency.
 
 
 Before you get carried away adding options, it’s worth double-checking that the larger wheels or panoramic sunroof you’ve just selected don’t push the car into a higher tax band. They can turn into expensive luxuries over a three-year lifespan.
 
 
 
 Look out for fleet trims
 
 
 
 Fleets and leasing companies have enough buying power to negotiate discounts on new cars that private buyers wouldn’t be able to access. Unfortunately, this isn’t reflected in the list price and those discounts won’t result in lower benefit-in-kind for drivers.
 
 
 Instead, to help pass those savings on, some manufacturers offer fleet-focused trim levels that add essential kit but in effect have the discount built into the list price. The result is lower benefit-in-kind payments than for an equivalent retail-focused version.
 
 
 
 Select a commercially viable vehicle with tax benefits
 
 
 
 Commercial vehicles weighing less than 3500kg and with a payload of 1000kg are a bit of a bargain in benefit-in-kind terms. Instead of being taxed based on a CO2-weighted percentage of their list price, they attract a standard tax charge. Until the end of the 2025/26 tax year it is £3960, which means they can be a tax-efficient alternative to a large car. It's even better news for electric commercial vehicles, whose standard tax charge is set at £0.
 
 
 This loophole for light commercial vehicles with a 1000kg payload has created a market for double-cab pickups among open-minded company car drivers.
 
 
 These provide dual rows of seating, top-tier trims, and greater towing capability than most households could possibly require. Should you be able to overlook their heavy fuel consumption and somewhat bumpy ride quality, these vehicles serve as a far less expensive corporate car option compared to an equivalent-sized sports utility vehicle.
 
 
 Nevertheless, the additional row of seating might reduce the cargo space and payload capacity for certain double-cab variants; thus, ensure that your chosen model meets this criterion: these vehicles along with similar ones having a maximum carrying weight under 1000 kg are classified as automobiles and therefore subject to taxation based on their CO2 emissions.
 
</div>

How to Slash Your Company Car Tax Bill in the UK

Unknown business, cars, money, personal finance taxes, taxes

To misquote an age-old adage, two things are certain in life: death and company car tax . You cannot evade the initial cost, and no matter how much effort you put into avoiding the secondary …