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2019/2020 Tax Year – What do I need to know?

Posted by on March 1st, 2019  •  0 Comments  • 

2019/2020 Tax Year – What do I need to know?

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
£8.21 £7.70 £6.15 £4.35 £3.90

If you have any questions about how any of these changes this impact you, please get in touch.

JLA Accounting Limited takes every care in preparing material to ensure that the content is accurate and up to date. However, no responsibility for loss for anyone acting from or refraining from acting as a result of this information can be accepted by JLA Accounting Limited.

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