Recently the Autumn budget was announced, here are a few of the most widely and commonly referred to aspects;
Corporation Tax
– Remaining at 19% until Mar 2020
– Expected to reduce to 18% April 2020
Capital Allowance’s – Big Change
– From the 1ST JAN 2019 Annual Investment Allowance will rise from £200k to £1m
– If you were considering purchasing any new expensive equipment, this is the year to do it
Income Tax
– Personal Allowance: £12,500 (2018/19: £11,850)
– Basic Rate: £37,500 (2018/19: £34,500) at 20%
– Higher Rate: £37,501 – £150,000 at 40%
– Additional Rate: £150,001 at 45%
Savings Income – No Change
– Basic Rate: £1,000
– Higher Rate: £500
Dividend Income – No Change
– Tax free allowance: £2,000
– Basic Rate: 7.5%
– Higher Rate: 32.5%
– Additional Rate: 38.1%
National Insurance
– Class 1A (employers): 13.8% on an employee’s taxable benefits – no change
– Class 1B (employers): 13.8% on PAYE settlement arrangements – no change
– Class 2 (self employed): £3/week flat rate (2018/19: £2.95/week)
Small profits threshold £6,365/annum (2018/19: £6,025)
– Class 3 (voluntary): £15/week flat rate (2018/19: £14.65)
– Class 4 (self employed): 9% on profits between £8,632 and £50,000, plus 2% on profits over £50,000 (2018/19: profits between £8,424 and £46,350 plus 2% on profits over £46,350)
Capital Gains
– Tax free allowance: £12,000 (2018/19 £11,700)
– Basic Rate: at 10%
– Higher & Additional Rate: @ 20%
Any questions please do not hesitate to drop me an email or give me a call, 01484 963526.
This is not an exhausted list of the budget and a full low down can be emailed over at your request.