Key tax rate and allowance changes from April 2018

Key HMRC changes

 

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:

CO2 emissions table

 

 

 

 

 

 

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

 

Photo credit: Images_of_Money on VisualHunt.com / CC BY

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