A cost of living crisis is on the horizon. Soaring inflation and further interest rate rises in 2022 mean households are likely to see significant jumps in their monthly outgoings.
There are also a lot of legal changes scheduled for next year, on top of any further curve balls thrown our way by the pandemic. It is more important than ever to be on top of your finances, so here are the key dates for the next 12 months.
Jan 1: IHT rules change
HMRC has tweaked its rules for estates with no inheritance tax to pay, meaning full accounts no longer need to be submitted when the deceased was domiciled in the UK. The change should mean less paperwork for around 230,000 people.
Jan 31: online self-assessment tax return deadline
This is the date by which you must file tax returns online if you are self-employed or need to declare any income not taxed at source, such as from a rental property or dividends. Taxpayers who miss the deadline face an immediate £100 fine and a further £10 daily penalty for up to 90 days after the deadline, up to a maximum of £900.
Feb 3: Bank of England interest rate meeting
All eyes will be on the Bank of England next year and any move it makes to tackle soaring inflation. In December it caused surprise when it raised Bank Rate to 0.25pc; many had expected the increase to come in February 2022. It is widely predicted that another rise is on the cards, which will have ramifications for borrowers, savers and investors.
Feb 4: Ofgem sets energy price cap
Energy bills have soared and in April the regulator, Ofgem, is expected to increase the price cap, which limits what suppliers can charge customers on default tariffs and currently stands at £1,277 a year for a typical household.
Sarah Coles of Hargreaves Lansdown, the investment firm, said: “The announcement isn’t going to be pretty, because it’s going to reflect far higher wholesale prices, plus the cost of the industry picking up the pieces after energy company failures.”
Average annual bills are likely to rise by hundreds of pounds. The price cap will be announced in February and come into force in April.