How will the April tax changes benefit you?

A day in the life of Julia

HM Treasury
@hmtreasury

Meet Julia.

Julia is 29 and lives and works in Macclesfield.

She knows that the new tax year has started but isn't sure if and how she’ll benefit.

Julia works full time as a care worker and gets the National Living Wage.

At the start of the new tax year she gets a pay rise – along with over 2 million other workers.

This helps her with the cost of living – leaving more money in her pocket to save or spend on things she needs.

There's more good news for Julia...

The change in the personal allowance means she pays less tax on her income, so she gets to keep more of her hard-earned cash.

Today is Julia's day off, so she’s going to visit her granny.

But she lives an hour away – that’s a lot of petrol. Julia saves money on her fuel because of the freeze on fuel duty for the eighth successive year.

Meet Julia's granny, Margaret.

Margaret is retired and lives on a combination of her state pension and her savings.

Since the start of this tax year, Margaret gets a larger state pension which helps her with the cost of essentials like food and bills.

Today, this comes in handy when she insists on paying for Julia's pub lunch.

Margaret has a glass of wine with her lunch, and buys Julia a beer. She saves money on these drinks thanks to tax changes made since 2013.

Later in the day, Julia meets her boyfriend Ben.

They recently moved in together and have been talking about buying their own home and perhaps starting a family.

Julia wants to start saving for a deposit, so she puts some money in a new Lifetime ISA.

Julia doesn't pay tax on the interest she accrues. What’s more, the government will pay a 25% bonus on the amount. That’ll go towards her first home!

Julia is one of millions of people across the UK who'll benefit from our tax changes, which are helping to build an economy that works for everyone.