FINANCE CHANGES FOR THE NEW TAX YEAR 2018-19
ALTHOUGH THE CHANCELLOR DID NOT INTRODUCE ANY NEW TAX MEASURES IN HIS UK SPRING STATEMENT, 6 APRIL 2018 WILL STILL SEE A RAFT OF TAX AND OTHER CHANGES, SOME OF WHICH DATE BACK TO THE PRE- ELECTION 2017 SPRING BUDGET.
INCOME TAX: UK
The personal allowance rises by 3% to £11,850 and the basic rate band increases by the same percentage to £34,500 (outside Scotland), making the higher rate threshold (the sum of the two) £46,350. The dividend tax allowance will fall from £5,000 to £2,000 for the coming tax year and could mean extra tax of up to £1,143 on dividend income.
INCOME TAX: SCOTLAND The same income tax allowances will apply throughout the UK, however, in Scotland, a different set of rates and bands will apply to non-savings, non- dividend income – primarily earnings. Scotland will have five tax bands with rates ranging from 19% to 46%. The higher rate of income tax will be 41%, not 40%, and the threshold at which it starts will be £43,430 –£2,920
below the rest of the UK. For Scottish pharmacists with earnings of £50,000 a year, that means an extra tax charge of £824 a year (up from £400 in the last tax year) for being resident in Scotland!
TAX RELIEFS
HMRC has confirmed that Scottish taxpayers will still be able to transfer 10% of their tax-free personal allowance to their spouse or civil partner. Similarly, those who receive relief on their pension contributions at source will continue to receive relief of 20%, with no adjustment required for those taxed at a rate below 20%, and there will still be scope for those taxed at a higher rate to claim additional relief. Finance cost relief for landlords will also continue to apply at 20% as is the case in the rest of the UK.
See our Tax Rate Card 2018/19 on
www.maco.co.uk for the full list of rates, allowances and reliefs.
NATIONAL INSURANCE CONTRIBUTIONS
The national insurance contributions (NICs) thresholds will also be increased by 3%. The upper earnings limit (for employees) and upper profits limit
(for the self-employed) will rise to £46,350, matching the UK higher rate income tax threshold. Class 2 NICs, which were originally intended to end in April, will survive for 2018/19 (at £2.95 a week) before disappearing for 2019/20.
INHERITANCE TAX (IHT) The residence nil rate band, which was introduced in the 2017/18 tax year, will rise by £25,000 to £125,000 in 2018/19. The main nil rate band remains unchanged at £325,000.
AUTOMATIC PENSIONS ENROLMENT
The minimum contribution levels for workplace pensions operating under automatic enrolment provisions will rise from 6 April 2018 to: Employer 2% and Employee 3%. The contribution levels will continue to rise until the Employer is paying a minimum of 3% and the Employee a minimum of 5% towards the pension by 6 April 2019.
COMPANY CARS
Company car tax will rise for all but the highest emission vehicles and fuel benefit will rise by 3.5% for all company cars from 6 April. •
� �
MARK TENBY DIRECTOR, MARTIN AITKEN & CO E:
MLT@MACO.CO.UK T: 01412720000
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
