The start of April brings changes to a number of tax rates and bands…
Allowances
Personal Allowance – the personal tax free allowance for UK residents has increased to £11,850.
Higher Rate Threshold – the higher rate tax threshold for UK residents has increased to £34,500 (£46,350 including personal allowance).
Dividend Allowance Reductions – the tax free dividend allowance has been reduced from £5000 to £2000.
Please note different rates and tax bands apply in Scotland.
Marriage Allowance
The allowance has increased to £1,185 resulting in the potential for an additional £237 saving for that year.
National Insurance
Employers NIC are 13.8% of earning over £162 per week.
Employees NIC are 12% on earnings of between £162 and £892 per week, and 2% thereafter.
Capital Gains Tax
The annual exempt amount for individuals for gains on the disposals of assets has increased to £11,700.
Company Cars
Those cars not meeting the Real Driving Emissions Standard are now subject to a 4% higher scale charge for the purposes of company car tax, (this was previously only 3% more). Also the Benefit in Kind rates for company cars have increased:
The car fuel benefit charge has increased to £23,400.
VAT
The registration threshold remains £85,000. The deregistration threshold is £83,000.
If you would like any further clarification please do not hesitate to contact us.
Lucy
