The start of April brings changes to a number of tax rates and bands…
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.
The allowance has increased to £1,250 resulting in the potential for an additional £250 saving for that year.
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.
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%|
| For each additional |
5g, add 1%.
The car fuel benefit charge has increased to £24,100
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.