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 £12,500.
Higher Rate Threshold – the higher rate tax threshold for UK residents has increased to £37,500 (£50,000 including personal allowance).
Dividend Allowance Reductions – the tax free dividend allowance has been frozen at £2,000.
Please note different rates and tax bands apply in Scotland.
Marriage Allowance
The allowance has increased to £1,250 resulting in the potential for an additional £250 saving for that year.
National Insurance
Employers NIC are 13.8% of earning over £166 per week.
Employees NIC are 12% on earnings of between £166 and £962 per week, and 2% thereafter.
Capital Gains Tax
The annual exempt amount for individuals for gains on the disposals of assets has increased to £12,000.
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:
| CO2 Emissions | 2018/2019 BIK % | 2019/2020 BIK |
| 0 – 50 | 13% | 16% |
| 51 – 75 | 16% | 19% |
| 76 – 94 | 19% | 22% |
| 95 | 20% | 23% |
| For each additional 5g, add 1%. Until Maximum | 37% | 37% |
The car fuel benefit charge has increased to £24,100
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
