MILLIONS of households should take note of eight major money dates coming this year – including when tax-free cash grants worth up to £300 will land.
Consumers will have to file self-assessment tax returns later this month, while autumn brings with it cost of living payments.
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Energy prices are also set to fall towards the back end of the year, while millions on low incomes will get an added discount as well.
Here’s everything you need to know about the key dates coming up in 2023:
Deadline for self-assessment tax returns – July 31
A number of self-employed taxpayers have to make advance payments on their tax bill known as “payments on account”.
The payments are usually due by midnight on January 31 and July 31 and each one is half your previous year’s tax bill.
The idea behind it is that you pay for some of your tax bill in advance and it stops you being indebted to HMRC.
That means you have just a few weeks left to submit your payment before the July 31 deadline.
Anyone who is self-employed and has been self-employed for at least a full year will need to make these payments.
However, you don’t have to if:
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- your last self-assessment tax bill was less than £1,000
- you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings.
As well as the income tax you owe, you also have to make Class 4 National Insurance contributions.
If you miss the July 31 deadline you’ll be charged interest on the amount owed. This rate is currently set at 7.5%.
Tax credit renewals deadline – July 31
Hundreds of thousands of households need to reapply for tax credits by July 31 or could have their payments stopped.
HMRC should have sent you a renewal pack in the post between May 2 and June 15 with all the details.
It’s up to you to check all the information on the pack is correct and respond by July 31.
If you don’t, you could see payments stopped and might even have to pay some money back.
More than 500,000 people claim tax credits and they’re worth up to £3,685 a year, so you’ll want to make sure you get in touch with HMRC on time.
£300 cost of living payment – autumn
The second instalment of the £900 cost of living payment worth £300 is set to be made to million of households this autumn.
However, a specific date for when the tax-free cash will land in bank accounts is yet to be announced by the Government.
It comes after the first £301 instalment was paid in April and May this year. The third portion of the £900 is set to be paid in spring 2024.
The payments are being made to those receiving the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
You don’t have to apply for the cash as it’s made automatically if you’re eligible.
Student maintenance loans – September or October
Student maintenance loans are paid to university students to help cover living costs such as rent.
They are usually paid at the start of each new term, so you typically receive three payments a year.
That means students going back to uni in the 2023/24 academic year should receive their first loan in September or October.
The remaining two are usually paid in January and April 2023.
Lower energy bills – October 1
Energy bills have already fallen for millions of households after the new price cap, set by Ofgem, came into effect on July 1.
The regulator updates the cap every three months – in January, April, July and October.
The typical household on a dual-fuel tariff is now paying £2,074 a year.
But they are expected to fall further, according to experts at Cornwall Insights.
The analysts are predicting the typical bill will fall below £2,000 a year, to £1,978.33 from October 1, when the new price cap will be updated again.
Of course, this is just a prediction and not a certainty, but Cornwall Insights have been fairly accurate in estimating previously.
Tax return deadline – October 1
Any self-assessment tax customers submitting a paper return for the 2022/23 tax year have to do so by October 31.
That said, if you do miss the October 31 deadline you still have until January 31, 2024, to file online.
Previous figures from HMRC have suggested around 5% of self-assessment customers submit paper forms.
Either way, you’ll want to submit your tax return as soon as possible. That way you’ll know what you owe and can budget ahead.
Up to £300 cost of living payment – November
The third cost of living payment is set to be made to millions of pensioners from November.
You will be eligible for the payment if you are entitled to a Winter Fuel Payment for winter 2023/24.
Effectively, the cost of living payment will top this allowance up.
Eligible households will be sent a letter in October or November telling them how much their total payment will be.
The up to £300 top up is being made in addition to the payment this group received in November 2022.
Warm Home Discount – November
The Warm Home Discount is an automatic £150 discount off energy bills.
Anyone eligible for the rebate will start being contacted from November until January informing them.
But when you actually receive the discount varies depending on who your supplier is.
If you live in England or Wales you won’t have to apply for the discount. In Scotland, some customers will need to apply for cash.
The Government is yet to reveal the full details for the 2023/24 scheme.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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