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Every month brings changes on the money front, but there’s three dates not to missed at the end of July – and overlooking these key deadlines could hit you in the pocket.
This month started with the new Ofgem energy price cap of £2063 for an average household coming into effect and will end with cut-off dates if you are self-employed or claim Tax Credits. You are also being urged to check your stock of stamps to make sure you haven’t got any that will expire on July 31.
Here’s the detail of the deadlines that fall on July 31:
Read more: All you need to know about remortgaging your home as interest rates soar
Second payment on account deadline
If you are self-employed or have other untaxed income, you usually need to make payments on account – advance payments towards your annual tax bill – twice a year to help spread the cost of your tax bill. July 31 is the first deadline and is the amount you need to pay will be half your previous year’s tax bill.
Anyone who is self-employed and has been self-employed for at least a full year will need to make these payments. The only exceptions are:
- If your last self-assessment tax bill was less than £1,000
- If you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings.
If you miss the July 31 deadline you’ll be charged interest on the amount owed. This rate is currently set at 7.5% but could rise if the Bank of England increases interest rates in August.
Tax credit renewals deadline
Hundreds of thousands of households need to reapply for by July 31 or their payments may stop. You should have received a renewal pack in the post by June 15 with all the details to renew, and it’s up to you to check all the information is correct and respond by the end of this month.
Some Tax Credits claimants in Northumberland have already been moved on to Universal Credit and families living in County Durham who claim Tax Credits are among those who will start to be moved over to Universal Credit this month, the Department of Work and Pensions (DWP) announced earlier this month. However, until you receive your Migration Notices, which give legacy benefits claimants notice that they will be switched to Universal Credit, you should continue to renew your Tax Credits claim to avoid your payments being stopped.
Deadline to use up stamps without barcodes
If you have a stash of stamps tucked away, now is the time to use them up before they finally become worthless at the end of this month. Everyday stamps that feature a profile of the late Queen’s head – so-called ‘definitive stamps’ – are being phased out after the original deadline of January 31 was extended to July 31 by Royal Mail in recognition of customers needing more time to adjust to the change.
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From August 1, you can only use barcoded stamps and Royal Mail will treat any post sent with non-barcoded stamps on as having insufficient postage, so the person you’re sending the letter or parcel to will face an additional charge to receive it. If you think you have too many stamps to use up in the next couple of weeks, you can swap them for new barcoded versions.
Next month, homeowners will be holding their breath for another potential interest rate rise on August 3, as the the Bank of England’s Monetary Policy Committee’s (MPC) holds its fifth meeting of 2023. Ofgem will also announce the latest energy price cap to take effect from October 1, 2023.
