April marks the start of the new financial year,

While many across the UK are bracing for widespread increases in household bills, Northern Ireland presents a slightly different picture. At Errigal Accountants Belfast, we aim to keep you informed about the changes that do affect you and your financial planning.

While we welcome the fact that Northern Ireland is not subject to the water charge increases seen in England and Wales – a stance supported by Infrastructure Minister Liz Kimmins – and that the GB energy price cap doesn’t directly apply here due to our separate energy market, several other costs are changing.

Here’s a breakdown of the key increases impacting households and businesses in NI:

Motoring Costs:

• Car Tax: The standard annual car tax rate has risen by £5 to £195 for a single 12-month payment, with slight increases for monthly or bi-annual payments.
• End of EV Exemptions: A significant change is the removal of car tax exemptions for electric, zero, and low emission vehicles. The payable amount depends on the vehicle’s registration date and cost. Vehicles registered between March 1, 2001, and March 31, 2017, now face a £20 annual charge, while those registered on or after April 1, 2017, are subject to the full £195 rate.
• Luxury EV Supplement: Electric and zero-emission vehicles registered from April 1, 2025, with a list price exceeding £40,000 will also incur the expensive car supplement.
• Hybrid Vehicle Discount Removed: The £10 annual discount for hybrid and alternatively-fuelled vehicles has been abolished, with rates now varying based on registration date and CO2 emissions.

Home Entertainment:

• TV Licence Increase: The cost of a colour TV licence has risen by 2.9% to £174.50 annually (black and white £58.50). Concessions are available for certain groups, including the blind and some over-75s receiving pension credit.

The Impact of “Fiscal Drag”:

• Frozen Tax Thresholds: Since 2022, income tax thresholds have remained static. This “fiscal drag” means that as wages increase with inflation, more individuals are likely to move into higher tax brackets, increasing their overall tax burden. The Office of Budget Responsibility (OBR) estimates this will significantly contribute to the rising tax burden in the coming years.

Connectivity Costs:

• Mobile and Broadband Price Rises: Many customers will see their mobile and broadband bills increase, either in line with inflation or through fixed hikes depending on their contract terms. Uswitch estimates average annual increases of £21.99 for inflation-linked broadband contracts (with some new plans seeing up to £42) and £15.90 for mobile contracts (up to £48 for newer deals).
• Potential Savings: It’s crucial for broadband customers to review their contract end dates, as switching after the initial term can potentially save up to £180 per year. Vodafone and Virgin Media are offering price freezes for new customers until 2026. Mobile users can check their contract status by texting INFO to 85075.

Property Transactions:

• Changes to Stamp Duty: The thresholds for stamp duty payments have been lowered, and the first-time buyer relief has also been adjusted. All house purchases now incur stamp duty starting at 2% on the portion between £125,000 and £250,000. First-time buyers pay 0% up to £300,000 and 5% on the portion up to £500,000.

Property Costs:

• Rates Increase: Both domestic and commercial property rates in Northern Ireland have increased. The regional domestic rate has risen by 5%, and the regional business rate by 3%. This translates to an extra £31.20 annually for a domestic property valued at £123,000 and an additional £435.24 for a business valued at £50,000. Furthermore, local council district rates have also increased, with Belfast City Council implementing a 5.99% rise and Antrim and Newtownabbey a 4.99% increase for 2025/26.

Planning for the New Financial Year with Errigal Accountants Belfast:

Understanding these changes is crucial for effective financial planning. At Errigal Accountants Belfast, we are here to help you navigate these adjustments and ensure your financial strategies remain robust.

Whether you are an individual concerned about the impact on your household budget or a business owner assessing the implications of increased rates and other costs, our team is ready to provide expert advice and support.

Contact Errigal Accountants Belfast today to discuss how these changes may affect you and how we can help you plan for the future.