Philip Hammond delivered his Autumn Budget for 2018, with the announcement that austerity is “finally coming to an end”. The focus being “the hard work of the British People paying off” as most people will be paying less income tax from next April.
A brief summary of some of the announcements are set out below:
Income Tax Allowances
The personal tax allowance is due to increase from £11,850 to £12,500 from 6 April 2019. The higher-rate tax threshold will increase to £50,000, which is one year earlier than initially planned. The thresholds will then remain at the same level for 2020-21 before increasing in line with the Consumer Prices Index in subsequent tax years.
Capital Gains Tax
The CGT Annual Exemption will increase from £11,700 to £12,000 for individuals & personal representatives and £6,000 for trustees of settlements with effect from 6 April 2019.
National Living Wage changes
From April 2019 the National Living Wage will rise by 4.9% from £7.83 to £8.21
The rate for 21 -24 year olds will increase from £7.38 to £7.70
The rate for 18 -20 year olds will increase from £5.90 to £6.15
The rate for 16 -17 year olds will increase from £4.20 to £4.35, and
The apprentice rate will rise from £3.70 to £3.90.
VAT registration threshold
The VAT registration and de-registration thresholds are due to be frozen at £85,000 and £83,000 respectively until April 2022.
Capital Allowance for Structures and Buildings
A new Structures and Building Allowances (SBA) has been introduced for new non-residential structures and buildings. The new relief will be provided on eligible construction costs, where a contract for the physical construction works is entered into after 29 October 2018 at a rate of 2% per year on a straight line basis. For information on recruiting for Construction sites please contact Laura at Greywolf Recruitment.
From April 2022, there will be a new tax on the production and import of plastic packaging. This tax will apply to plastic packaging that isn’t made up of at least 30% recycled plastic.
Its good news for businesses, as rates will be cut by one third for retail businesses with a rateable value below £51,000. This will be effective from April 2019 for two years.
At polkadotfrog we ensure that we provide a consultative approach to recruitment. Offering our expert knowledge, our consultants can provide industry advice and source the most suitable candidates to support businesses at all levels. For more information, please contact your local branch today.