Chartered Management Accountants

Budget Report

The UK 2018 Budget

Income Tax

  • The personal allowance threshold, the rate at which people start paying income tax at 20%, to rise from £11,850 to £12,500 in April – a year earlier than planned
  • The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April
  • After that, the two rates will rise in line with inflation
  • National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019.

Off Payroll IR35

  • The employer will be responsible for deduction of tax and NI for personal service companies
  • Small organisations will be exempt
  • The crackdown is the biggest revenue-raising measure in this year’s Budget

Support for the High Street

  • Small retail businesses will see their business rates bills cut by a third for two years from April 2019, saving them £900 million.
  • Local high streets will benefit from £675 million to improve transport links, re-develop empty shops as homes and offices and restore and re-use old and historic properties.
  • Public lavatories will receive 100% business rates relief.
  • This adds to previous reductions in business rates since Budget 2016 which will save firms over £12 billion over the next five years.

Annual Investment Allowance

  • The government will increase the Annual Investment Allowance five-fold from £200,000 to £1 million to help businesses to invest and grow.
  • Also, from October 2018, businesses will be able to deduct 2% of the cost of any new non-residential structures and buildings off their profits before they pay tax.

Edinburgh Office:

Phone: 0131 516 3885
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Bonnington Bond,
2 Anderson Place,
Edinburgh,
EH6 5NP
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info@stuartfergusonaccountants.co.uk

Falkirk Office:

Phone: 01324 632500
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Office 10,
16 Melville Street
Falkirk
FK1 1 HZ
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info@stuartfergusonaccountants.co.uk