Here’s a brief round-up of the main points from the Budget 2018 for you as a small business owner:
Personal tax-free allowance – to increase to £12,500 for 2019/20 (from £11,850)
Marriage Allowance – increase to £1,250 worth a possible tax saving of £250 (from £237)
VAT Threshold – has been frozen at £85,000 for a further two years (until April 2022)
Tax free dividend allowance – to remain at £2,000.
Corporation tax – to remain at the current rate of 19%.
Making Tax Digital – No further announcement meaning that HMRC push ahead with the incoming requirement for VAT registered businesses to maintain digital records from April 2019 – most such business will need to consider using cloud accounting apps.
IR35 – Rules which have seen many public sector contractors become employees are expected to be rolled out to private sector large and medium-sized businesses from April 2020.
National Living Wage – will increase to £8.21 starting April 2019 (from £7.83)
So, at what rate should you set your next year’s director’s salary and dividends? Bespoke advice will be sent to all clients in the coming months. In the meantime we have two downloads available:
Enjoy saving tax?