A couple of days ago the Chancellor delivered the Governments latest budget. We wanted to give you a summary of things that might impact you as an individual or business owner, of course we are all different so if you are unsure of anything please get in touch with your adviser or email email@example.com and we will be in touch.
The Budget was labelled “The End of Austerity” and to that end he did pledge lots of money to things such as the NHS, education and fixing potholes! So, did he pay for that by taking more of your hard-earned money in taxes – well in short NO, the budget was more spectacular for how little changed in the main headline that affect most of the population-
- No change to fuel, beer, cider & spirits duties
- No change to rates of income tax, VAT, corporation tax, inheritance tax – you get the gist!
- No change to the VAT registration threshold
- No major changes to pension allowances and thresholds
- The inheritance tax threshold remains frozen at £325,000
- The annual ISA allowance remains at £20,000 per person
So, what has changed and is there any good news – well yes – the Government followed through with one of it’s promises and did it a year early – we will pay less income tax, here is the detail –
- The personal allowance and higher rate threshold will increase earlier than expected to £12,500 and £50,000 respectively from April 2019. This means that in 2019-20, there will be nearly 1 million fewer higher rate taxpayers than in 2015-16.
There were also announcements to help first time buyers with stamp duty, extra money for those on welfare and an increase in the National Living Wage.
For business owners there were positive changes to rules on Business Rates, Annual Investment Allowance & Apprenticeship levy – however on the flip side be aware of these announcements also –
- To benefit from entrepreneurs’ relief, individuals will need to meet the qualifying conditions for a minimum of two years – up from 12 months previously
- There will be a clamp down on limited company contractors from April 2020, the IR35 rules will be rolled out to large and medium sized private sector companies.
We will leave things there however if you have seen something else in the detail that might affect you please do get in touch with us.
One last thing, we are back to having just one budget each year but IF there is not a favourable Brexit outcome there will be another “emergency” Budget in the Spring where much could change.