You're in for a nice surprise on your payslip this month.

The amount of money we can earn tax free has increased - meaning you'll take home a little extra cash each month than you did last year.

Last year, the tax free allowance was £11,500, meaning you are only taxed on earnings after that amount.

But this year it has gone up by £350, to £11,850.

Those who earn £25,000 a year, for instance, previously would have taken home £1,690 but this month they would earn £1,699 after tax and national insurance.

While an increase of £9 may not seem like a lot, every penny helps.

However, the new tax year has also brought a price increase on every day things - including prescriptions, which have gone up by 20p from £8.60 to £8.80.

Air fares have also risen by 4 per cent on flights of more than 2,000 miles, as have dentist check ups, which used to be £20.60 but have gone up by £1.