SURVEY: Cost of living crisis to hit as energy price cap rises by 54%
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The cost of living crisis will deepen for many households from today - as energy bills are set to skyrocket due to an increase in the price cap - and we want to know how it is affecting YOU.
April 1 sees the first day the cap will rise - by 54% - which will see the next bills for UK households rise.
However, higher energy prices are not the only way households and businesses are set to feel the pinch.
From the start of the month, a raft of tax rises and reductions in state pandemic support will increase costs for businesses and, ultimately, lead to higher prices for their customers.
And we want to know how the crisis is hitting your wallet - and affecting your family.
Please, complete our survey to give us an insight into the situation...
Here are the tax changes which could impact your wallets.
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– VAT increases
The cost of buying a pub meal, soft drink or hotel stay could become more expensive from April as VAT levels across the hospitality sector lift back to 20%.
The industry saw VAT dropped to 5% to support its recovery during the pandemic.
It rebounded back to 12.5% in October last year as restrictions eased, but from Friday has returned to 20%.
– Business Rates
Retail, hospitality and leisure businesses were supported during the pandemic with financial help including a break to the business rates property tax.
The tax break in England has been steadily unwound with businesses receiving a 66% reduction of their rates up to £2 million per firm over the past nine months.
However, this has now reduced to a 50% reduction with a cap of £110,000 per business.
– National Insurance
On April 6, the Government’s proposed National Insurance tax rise will come into force.
Ministers have said the plan is to use the extra revenues to fund the NHS, health and social care.
It will see employees, employers and the self-employed all pay 1.25p more in the pound for NI.
For employees they would previously pay 12% on earnings up to £50,270 and 2% on anything above that. From April 6, the rate goes up to 13.25% and 3.25% respectively.
For the self-employed, rates will go up from 9% and 2% to 10.25% and 3.25%.
Payments will only be collected on wages above £9,880, although this rises to £12,570 in July – a threshold rise announced by Chancellor Rishi Sunak at the recent Spring Statement.