Budget Update

The Chancellor Philip Hammond presented his second Autumn Budget this week and we’ve summarised the key tax points for you here:

 

  • The personal allowance threshold, the rate at which people start paying income tax at 20%, to rise from £11,850 to £12,500 in April – a year earlier than planned.
  • The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April.
  • National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019
  • VAT threshold for small business to remain at £85,000 until April 2022.
  • The Employment Allowance for Employers NI remains at £3,000.
  • Annual investment allowance to be increased from £200,000 to £1m for two years
  • Business rates bill for firms with a rateable value of £51,000 or less to be cut by third over two years (measure to benefit 90% of independent shops, pubs and restaurants, cutting bills by £8,000).
  • All first-time buyers purchasing shared equity homes of up to £500,000 will be eligible for first-time buyers’ relief.

Check out the full article here: https://www.cronertaxwise.com/community/the-budget-2018/