Key changes to tax rates and allowances 2019

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