2018 Autumn Budget - Income Taxes
The following is a summary of 2018 Autumn Budget in relation to Income Taxes.
To return to the full summary of facts click here.
Income Tax rates and thresholds
The Chancellor announced that the personal allowances will increase to £12,500 for the 2019/20 tax year, one year earlier than planned. The basic rate band, taxed at 20%, will increase to £37,500 and the higher rate threshold, taxed at 40%, will increase to £50,000.
The Lifetime Allowance for pension savings will increase to £1,055,000 for 2019/20.
The starting rate for savings income will remain unchanged at £5,000 for 2019/20.
The dividend allowance will remain unchanged at £2,000 for 2019/20.
National Living Wage (NLW)
The National Living Wage (NLW) will increase to the following from April 2019:
- Workers aged 25 years old and over - increase from £7.83 to £8.21
- Workers aged 21 to 24 years old - increase from £7.38 to £7.70
- Workers aged 18 to 20 years old - increase from £5.90 to £6.15
- Workers aged 16 to 17 years old - increase from £4.20 to £4.35
The apprentice rate for those aged under 19 or in the first year of apprenticeship will increase from £3.70 to £3.90 per hour.
Van benefit charge and Fuel benefit charges for cars and vans
From 6 April 2019, employers who provide employees with vans which are available for private use will see an increase in the level of taxable benefits arising on the van and the fuel provided. The flat rate van benefit charge will increase from £3,350 to £3,430 and the multiplier for the car fuel benefit charge will increase from £23,400 to £24,100 from April 2019. The flat rate van fuel benefit charge will increase to £655.
This continues an upward trend of taxing company vehicles.
NIC Employment Allowance
The employment allowance which can reduce employers NIC liabilities by up to £3,000 will no longer be available to organisations with a total employers NIC liability of over £100,000 in the previous year.
This allowance is now targeted toward smaller businesses where it will be of greater benefit.
To return to the full summary click here.
A PDF version is available to download here.
Rates and Allowances tables are available to download here.
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