This is when the new tax year starts in 2020 - and what changes will be introduced

The start of a new tax year brings with it a number of changes that will affect your finances.

The 2020/21 tax year will begin in April, offering a welcome boost to payments, while other taxes will also be increased.

Here are the key dates for your diary and some of the tax and personal finance changes that will be introduced this month.

When does the new tax year start?

The 2020/21 tax year begins on Monday 6 April 2020.

How much Personal Allowance will I have?

Personal Allowance is the amount of income that an individual is entitled to receive tax free each year.

The current standard Personal Allowance is £12,500, and this will remain the same in the 2020/21 tax year in England, Scotland and Northern Ireland.

What are the income tax thresholds for 2020/21?

These are the income tax bands in England and Northern Ireland for 2020/21:

Basic tax rate: 20 per cent on annual earnings above the Pay As You Earn (PAYE) threshold and up to £37,500

Higher tax rate: 40 per cent on annual earnings from £37,501 to £150,000

Additional tax rate: 45 per cent on annual earnings above £150,000

These are the income tax bands in Scotland for 2020/21:

Starter tax rate: 19 per cent on annual earnings above the PAYE threshold and up to £2,085

Basic tax rate: 20 per cent on annual earnings from £2,086 to £12,658

Intermediate tax rate: 21 per cent on annual earnings from £12,659 to £30,930

Higher tax rate: 41 per cent on annual earnings from £30,931 to £150,000

Additional tax rate: 45 per cent on annual earnings above £150,000

Top tax rate: 46 per cent on annual earnings above £150,000

PAYE tax rates and thresholds are effective from 6 April 2020. However, following recent Scottish Parliamentary approval, 2019 to 2020 rates will remain operative until 10 May 2020, and will then be superseded by the rates outlined above.

These are the income tax bands in Wales for 2020/21:

Basic tax rate: 20 per cent on annual earnings above the PAYE tax threshold and up to £37,500

Higher tax rate: 40 per cent on annual earnings from £37,501 to £150,000

Additional tax rate: 45 per cent on annual earnings above £150,000

Will National Insurance payments change?

The Chancellor announced in the 2020 Budget that the National Insurance Contribution (NIC) thresholds in the new tax year will rise.

The threshold from which both employed and self-employed workers start paying national insurance will rise from £8,632 to £9,500, and any earnings above this are subject to 12 per cent NIC.

Half of UK households will benefit by £120 per year on average, according to the Institute for Fiscal Studies.

Will state pension increase?

The flat-rate state pension will rise by 3.9 per cent in the new tax year, increasing by £342 to £175.20 per week, or £9,110.40 per year.

People who are on the old state pension will see payments rise from £129.20 a week to £134.25 a week, or £6,981 a year (not including top-ups).

What about pensions annual allowance?

People in the UK are permitted to save a maximum of £40,000 per year into their pension, while higher earners are subject to a lower allowance.

Previously, any earnings above £110,000 would see the annual allowance start to taper off, until someone earning over £210,000 could only pay £10,000 into a pension.