A UK law shakeup is coming next month as a number of measures become official that range from road tax to divorce.
Change is in the air with new rules and regulations covering several key aspects of life including your pay with new rates for living wage and minimum wage.
Among the new laws are higher car tax rates that will see petrol and diesel drivers be 'punished' with higher taxes in a bid to lower CO2 emissions.
Whilst some changes are more relevant to businesses, the combination of sweeping changes will have an effect on most people, Wales Online reported.
As the cost of living crisis persists, it's handy to keep up to date with anything that will hit your bottom line.
VED rates are going up meaning a rise in car tax from April 2022
From April 2022, Vehicle Excise Duty (aka car tax ) will rise in line with the Retail Prices Index measure of inflation from April 2022. However, how much the cost will rise by will depend upon your vehicle's emissions.
You can calculate your road tax changes here.
For instance, if your car emits no CO2, your car tax will remain at 0.
If your car's CO2 emissions are between 1 and 50g per km, your standard rate of car tax will increase from £155 to £165, but your first year rate will still be £10.
The amount you pay also depends on how often you want to make a payment. There's a five per cent surcharge if you pay monthly or every six months.
The Driver and Vehicle Licensing Agency (DVLA) runs computer tests every month to check whether the owners of cars registered in the UK have paid tax.
If the system flags up an untaxed vehicle that is not declared SORN (not on the road), the DVLA will send a fine of £80 to the owner. If this is paid within 28 days, a 50 per cent discount should be applied.
New divorce laws will come into force from April 6
In England and Wales on April 6, changes to the legislation on divorce will come into force.
The changes are part of the Divorce, Dissolution and Separation Act 2020, which aims to reduce the potential for conflict amongst divorcing couples by:
- removing the ability to make allegations about the conduct of a spouse
- allowing couples to end their marriage jointly
The act also introduces a minimum period of 20 weeks between the start of proceedings and application for conditional order.
This provides couples with a meaningful period of reflection and the chance to reconsider.
Where divorce is inevitable, it enables couples to cooperate and plan for the future.
It will also no longer be possible to contest a divorce, except on limited grounds including jurisdiction.
It is worth noting that, as the new changes are brought in, the current online service will be unavailable from March 31. You can find out more about this here, on the government's website.
HMRC will stop making payments to Post Office card accounts after April 5
About 7,500 customers still need to switch so they don't miss out on vital payments as HMRC will stop making payments to Post Office card accounts after April 5.
This means customers must notify HMRC of their new account details.
Customers can choose to receive their benefit payments to a bank, building society or credit union account.
If they already have an alternative account, they can contact HMRC now to update their details.
If a customer misses the April 5 deadline, their payments will be paused until the customer notifies HMRC of their new account details.
Customers can also use The Money Helper website, provided by the Money Advice and Pensions Service, which offers information and advice about how to choose the right current account and how to open an account.
Employers will have to increase wages paid to some workers
Changes in the minimum wage are in the pipeline.
The Low Pay Commission made recommendations to the UK Government on what the minimum wage and living wage should be for 2022.
The UK Government accepted those recommendations and from April 1, 2022, it will be law for employers to pay their staff no less than the new rates.
New living wage and minimum wage rates from April 2022 can be found on gov.uk.
New tax for plastic packaging
A new "plastic packaging tax" is coming into force in April 2022 that will apply to all plastic packaging manufactured in the UK, or imported into the UK, that does not contain at least 30 percent recycled plastic.
The government has defined plastic packaging as "packaging that is predominantly plastic by weight" and says the new tax will not apply to any plastic packaging which contains at least 30 per cent recycled plastic or any packaging which is not predominantly plastic by weight.
Imported plastic packaging will be liable to the tax whether the packaging is unfilled or filled.
The government says the new tax aims to "provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging" and should lead to increased levels of recycling and collection of plastic waste, saving much of it from going to landfill.
The new law will take effect from April 1. Accountancy firm Harold Duckworth reports the rate of tax will be £200 per metric tonne of plastic packaging.
Changes in corporation tax
Companies and unincorporated associations that pay corporation tax will be affected by changes which come into effect on April 1, 2022.
HM Revenue and Customs has set the "main rate" for corporation tax for all non-ring-fenced profits to 19 per cent for the financial year that begins on April 1, 2022, increasing to 25 per cent of profits over £250,000 from April 1, 2023.
A small profits rate (SPR) will also be introduced at this time for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19 per cent.
Changes to fuel
Red diesel and rebated biofuels will become illegal from April 1, which will mainly affect users of off-road vehicles such as bulldozers and cranes.
The change is being made to help the UK meet its 2050 climate commitments.
