An overview of the biggest changes to the tax rules for the coming tax year.
- Personal Allowance
The personal allowance is rising to £12,500, with the higher rate tax threshold increasing to £50,000.
- Buy to Let for personal investors
Only 25% of mortgage interest will receive full tax relief with the balance receiving a 20% tax credit. You can read more about this here. This is the last year that Lettings Relief is available. You can read more about the impact of this here.
- Annual Investment Allowance
Since January 2019 the Annual Investment Allowance has risen from £200,000 to £1 million. This is set to run until December 2020.
- Making Tax Digital
This comes into effect for most VAT registered businesses with a turnover of more than £85,000 from 1 April 2019. You can read more about this here.
- Inheritance Tax
The IHT residence nil rate band increases to £150,000.
- Auto enrolment pensions
Contributions increase to 5% of pensionable earnings for employees and 3% of pensionanle earnings for employers. Some payroll schemes have now been auto-enrolled for three years so re-enrolment will take place.
- Minimum Wage
The National Living Wage and the National Minimum Wage increase in April 2019 to the following rates:
|25 and over||21 to 24||18 to 20||Under 18||Apprentice|
If you have any questions about how any of these changes this impact you, please get in touch.
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