Autumn Budget 2018

Autumn Budget 2018

Autumn Budget 2018. Some main points from yesterdays budget ;

  • The personal tax allowance is rising to £12,500 from April 2019 (a year earlier than promised). The basic rate band is also increasing to £37,500 from April 2019, thus you will not pay higher rate tax until your earnings exceed £50,000
  • Despite calls for abolishment, Entrepreneurs Relief, reducing the tax on disposal of business (assets) to 10%, remains in place
  • The Chancellor has tightened the rules on PSCs (Personal Service Companies) to include private as well as public sector workers. This is basically where people should be employed rather than self employed and taxed by PAYE rather than self dividends. However, they have agreed this will only apply to medium and large businesses and not until 2020
  • Capital Gains tax allowance increases to £12,000 from 2019/20
  • Corporation tax remains at 19% until 2020/21 when it will lower to 17%
  • Business rates – Companies with a rateable value of less than £51,000 will see their business rates lowered by 1/3 immediately
  • MAKING TAX DIGITIAL – For all VAT registered companies from April 2019 they must retain financial records on functional compatable software – please ask PMC for further details and help

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