fbpx

Tax Changes

National Living Wage Rise
The national living wage has increased from April 2018, therefore employers need to make sure that they are up to date with the current rates.

The rate applicable will depend on the worker’s age and if they are an apprentice. If HMRC find the employer has not paid they will send them a notice for the arrears plus a fine for not paying the minimum wage.

Personal Allowance on the up
We all have a ‘personal allowance’ which denotes the amount we can earn without paying any income tax. If you earn more than your personal allowance, then you pay tax at the applicable rate on all earnings above the personal allowance, but the allowance itself will remain untaxed.

Pensions
From April 2018, workers who have auto-enrolment pensions will have to pay more into this, with monthly contributions rising from a minimum of one per cent to a minimum of three per cent.

Student Loan tweaks

There are two types within the Student Loan Plan.

Plan 1
The annual threshold for the year 2018-19 is £18,330 as opposed to £17,775 for 2017-18.

Plan 2
You will have to start repaying your student loan once your income exceeds the £25,000 threshold. Previous threshold was £21,000.

Dividend Tax

The first £5000 of the dividend allowance in 2017/18 was tax free. This has changed from 06 April 2018, where the tax free dividend allowance has been reduced to £2000. Any dividends received above the allowance are taxed at the following rates:

7.5% for basic rate taxpayers
32.5% for higher rate taxpayers
38.1% for additional rate taxpayers

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Asmat Accountants

Asmat & Co are one of Berkshires’ leading independent firms of Accountants servicing a growing and satisfied clientele. At Asmat & Co expert advice is available from senior qualified Chartered Management Accountants (ACMA) and Chartered Certified Accountants (ACCA), at very attractive packages tailored to suit varied individual and business requirements. The professional team at Asmat & Co. possesses extensive experience in providing accounting, tax, finance transformation and business advisory services to a diverse customer base.

CONTACT US


  • 84 High Street, Slough, Berkshire SL1 1EL, United Kingdom
    Get directions >>
  • 01753 424968 / 02035 988 621
  • 01753 437109
  • info@asmataccountants.co.uk

Reading Office

  • 365-367 Oxford Road, Reading, RG30 1HA
    Get directions >>
  • 0118 950 9841
  • reading@asmataccountants.co.uk



× Chat with your accountant now!