October is almost here and with it comes a new slate of money and benefits changes including DWP, HMRC and bank account rules.
Firstly, the biggest and most significant money change in October is the Ofgem price cap. It means that any customers not on a fixed tariff already will see their energy bills increase by 10 percent, or an average of £149 for customers on ‘typical use’, ie those using exactly the average amount of gas and electricity each year.
There’s still time to fix and avoid the cap – Martin Lewis set out which firms are cheaper than the price cap right now, including some fixed tariffs which will entirely wipe out the price cap’s increase.
Also happening on October 1, mobile phone companies will be bound by new Ofcom rules. It means phone customers must be notified when they start roaming abroad and how much it will cost. Data roaming is notoriously expensive, and since Brexit every major network has removed data roaming from their contracts as standard apart from O2.
HMRC deadlines in October
On October 5, the deadline for self-assessment from HMRC means those who may owe tax to the taxman must register in time or face severe penalties.
Those who must register for self-assessment include basically anyone with income outside or instead of a main PAYE employer, if that income is over £1,000. It could include those letting out a property, those selling on eBay or a side hustle on Etsy, but if you make over £1,000 revenue (not profit), you will need to register for self-assessment by October 5.
It does not necessarily mean you owe any tax, but you need to punch the numbers through the assessment and pay any money HMRC then decides you do owe. Self assessment is also mandatory for anyone earning over £150,000, or for those who need to pay the high income child benefit charge (ie earning £60,000 or more).
Bank account rules and DWP law
Bank account changes will also come into place in October. New fraud rules mean banks will have to pay back money to scam victims by law. Customers who unknowingly send money to conmen will be eligible to receive up to £85,000 back from their bank in the new rules from October 7.
Speaking of bank accounts, new rules have been resurrected, tellling banks they must report suspicious income or financial activity of benefits claimants to the DWP.
Winter Fuel Payment and State Pension Triple Lock change
Stamp prices are rising again on the same day. Royal Mail has announced it will hike the price of stamps by another 30p to £1.65 (remember when they used to cost 25p?). It’s the second price rise in a single year, coming after a 10p hike in April.
On October 7, the Winter Fuel Payment Centre will open. It means those who are eligible to receive the payment will be able to call on 0800 731 0160 to check if they can get it.
Finally, on October 16, the inflation figures are announced for September. This is critical to the Triple Lock for state pensioners, as this one will decide how much the state pension will increase by in April. Right now, it’s forecast to go up by £460 based on wage growth, but if inflation ends up being higher, it could push the triple lock up by a larger increase. The Triple Lock means pensions must go up by as much as wage growth, inflation or a flat 2.5 percent, whichever is highest.
HMRC’s deadline for paper tax returns will arrive on October 31. Half a million people still fill one in on paper each year and if you do, the deadline is October 31. For those submitting one online, the deadline is January 31.
At the very end of the month, Labour will unveil its first Budget. On October 30, Rachel Reeves will deliver a budget she has already warned will be ‘painful’.
It is not yet known exactly what Labour will target – other than removing the universal Winter Fuel Payment – but we know that VAT, Income Tax and National Insurance will not be increased. It is thought that Labour may go after Capital Gains Tax, Stamp Duty or Inheritance Tax as money raisers to plug the £22Bn black hole it says has been found in the public purse.
Those with mortgages will be hoping it goes better than the disastrous mini-budget from Liz Truss in 2022 which pushed borrowing costs up on the market’s reaction to uncosted tax cuts.
