2018 BUDGET AND WHAT IT MEANS!

Posted on: 30 Oct 2018 at 13:29:18   |   Category: Important Announcement

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Further to Philip Hammond's Budget yesterday, the Conservative government has reiterated that the 'era of austerity is coming to an end'. This statement is supported by the drastic fall in the country's deficit from 9.9% in 2009-10 to 1.9% currently.


Employment rates are at a near record high, with unemployment rates at their lowest in over 40 years which is great news.


Here are some of the key points:


Personal:

From April 2019 the National Living Wage will rise from £7.83 to £8.21

Personal Allowance to increase from £11,850 to £12,500 in April 2019

Higher rate threshold to increase from £46,350 to £50,000 in April 2019

There will be an extension to the qualifying period of Entrepreneurs relief from 12 months to 2 years


IR35:

IR35 reforms have finally been confirmed to affect the private sector, however the introduction will be delayed until April 2020 and will only affect large and medium sized businesses.


Business:

Employment allowance for Employer's National Insurance is to be revised for larger firms

VAT threshold to remain unchanged at £85,000 for the next 2 years

Increases in the annual investment allowance from £200,000 to £1 million for the next 2 years

Level of contributions made by small companies to the apprenticeship levy to be reduced from 10% to 5%


Brexit:

The chancellor confirms the government have reached a pivotal moment in Brexit negotiations and are confident of a good deal, however funds have been set aside to cover all eventualities totaling £2.2 billion

Increase in funding to help departments to prepare for Brexit to over £4 billion


Others:

Fuel duties to be frozen for the 9th successive year

Tobacco duties continue to rise at inflation plus 2%

Duties to be frozen on beer, cider and spirits for a year to support pubs

New rail card to be introduced to save young people, aged between 26 and 30, a third off rail fares

Short-haul rates of Air Passenger Duty will not rise, whereas long-haul rates will rise in line with inflation