Several significant financial updates are set to take effect in May 2025, which could have a considerable impact on personal finances across the UK.
Major events such as NatWest’s acquisition of Sainsbury’s Bank, changes to tax penalties, and the latest inflation figures are among the key highlights.
Additionally, Nationwide’s anticipated confirmation of another £100 bonus, as well as deadlines for financial documents, will also shape the month ahead.
According to Manchester Evening News, these financial changes are crucial for many individuals to be aware of in order to stay informed and make the most of their financial planning.
May 1 : NatWest’s takeover of Sainsbury’s Bank
On May 1, NatWest will officially take over Sainsbury’s Bank in a deal valued at £2.5 billion. As part of the transition, Sainsbury’s Bank customers with personal loans, credit cards, and savings accounts will be transferred to NatWest.
Sainsbury’s Bank will continue to offer insurance and travel services but will stop providing new credit cards and loans.
May 1 : Late tax return penalties begin
If you missed the January 31 deadline for your tax return, late penalties will begin to accumulate from May 1.
In addition to the initial £100 penalty, a daily fine of £10 will be imposed, potentially rising up to a maximum of £900. If your return is six months late, you will incur an additional fee of either 5% of the tax due or £300, whichever is higher.
May 21 : Latest inflation update
The Office for National Statistics (ONS) is scheduled to release the latest inflation figures on May 21. After a drop to 2.6% in the previous update, experts anticipate a rise in inflation, largely driven by higher energy prices.
Inflation reached 11.1% in October 2022, highlighting the volatility of the economic environment.
May 29 : Nationwide £100 bonus announcement
Nationwide is expected to confirm on May 29 whether it will release another round of its £100 Fairer Share bonuses to customers.
This bonus is linked to the building society’s financial performance. Last year, Nationwide distributed £385 million to 3.85 million customers after posting profits of £2 billion. The announcement will follow Nationwide’s full-year financial results for the year.
May 31 : P60 deadline
By May 31, employers must issue the P60 form, which summarizes your total pay and deductions for the tax year. This form is essential for tax filing purposes and can also be used as proof of income when applying for loans or mortgages.
In addition to these key dates, other important financial changes in May include price hikes for NHS prescriptions, Spotify subscriptions, and increases to Universal Credit payments.
Ofgem will also announce the new energy price cap for the summer months, and free childcare applications for working parents will open.
