February 2022 News Archive

As the economy begins to recover from the pandemic, HM Revenue and Customs (HMRC) are is beginning to enjoy increased revenue streams again. What do you need to know about the National Insurance increases in April? Today, HMRC recorded £597.6 billion in receipts for April 2021 to January 2022. This is £124.8 billion higher than the figure recorded a year earlier which is largely due to the economic recovery from the pandemic. “The data shows the nation continuing to emerge from the pandemic with income tax and national insurance continuing to surge as more people return to work,” said Helen Morrissey, Senior Pensions and Retirement Analyst at Hargreaves Lansdown. This was reflected in the increase in receipts for self-assessment income tax and National Insurance Contributions (NIC) for the period of April 2021 to January 2022. This value stood at £15.1 billion, which is £5.3 billion higher than in the same period a year earlier. “The continuing rise in these receipts signals good news as we see more people in work but many of us are also bracing ourselves for the forthcoming 1.25 percentage point rise in national insurance - otherwise known as the Health and Social Care levy - due to come in April,” warned Morrissey.

As the economy begins to recover from the pandemic, HM Revenue and Customs (HMRC) are is beginning to enjoy increased revenue streams again.

Bad news for potential buyers as the average house price rises rose by £27,000 last year. The latest UK House Price Index recorded average house prices up 10.8% in the year to December 2021. According to data from the Land Registry, it is the biggest gain in a calendar year since 2002.

Bad news for potential buyers as the average house price rises rose by £27,000 last year.

Approximately £48.6 billion was invested in retail funds for 2021, £5.2 billion shy of the record £43.6 billion invested in 2017.

Approximately £48.6 billion was invested in retail funds for 2021, £5.2 billion shy of the record £43.6 billion invested in 2017.

The freeze also includes the qualifying earnings band, with the lower limit remaining at £6,240 and the upper limit at £50,270. “The decision reflects the key balance that needs to be struck between affordability for employers and individuals and the policy objective of giving those who are most able to save the opportunity to accrue a meaningful level of savings with which to use for their retirement,” the Department of Work and Pensions said. As a result, it is estimated that the freeze will allow an extra 17,000 people to qualify for the auto-enrolment scheme. These numbers are expected to add an extra £26 million in pension contributions for the year. “The decision comes at a time when Government is under increased pressure to move forward with the findings of its 2017 Auto-Enrolment review. In it, Government pledged to remove the lower earnings limit by the mid-2020s, a move that would bring many more people into workplace pensions,” explained Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown. The report further claimed that if the earnings trigger was raised to £12,570 it would decrease the number of savers by an estimated 119,000 people, reducing the total pension saving by £111 million. Morrissey also noted that the Government has pledged to remove the lower earnings limit by the mid-2020s, a date which is not far away. “It is an issue the pensions minister was questioned about in the House of Commons recently and, while freezing the lower limit will boost auto-enrolment, the pressure will continue on Government to say when it will move forward with its recommendations,” she explained. However, in a statement released by the Government, the decision to freeze the wage trigger was also due to the “challenging economic circumstances arising from the COVID-19 pandemic”.

The freeze also includes the qualifying earnings band, with the lower limit remaining at £6,240 and the upper limit at £50,270.

The Bank of England has today increased base rate by 0.25% up from 0.25% to 0.50%. Moneyfactscompare.co.uk has analysed the average rates offered across savings and mortgages and considers what this decision may mean for consumers moving forward.

The Bank of England has today increased base rate by 0.25% up from 0.25% to 0.50%.

Banks are battling it out for your current account custom, with generous cash incentives and other perks now on offer to encourage you to switch. The biggest cash switching offer available is from NatWest, which will pay new customers £150 to switch to its Select Account, as long as they use the Current Account Switch Service (CASS), pay in £1,500 and register and log in to online or mobile banking. This is a big hike from the £100 NatWest offered at the end of 2021, but this deal only runs until 7 April.

Banks are battling it out for your current account custom, with generous cash incentives and other perks now on offer to encourage you to switch.