Northampton: 01604 657200    Daventry: 01327 317300

Learn why DNG Chartered Accountants is the only accountants you will ever need.

 

[27.11.2018]

Budget 2018 – Key points

The Chancellor of the Exchequer, Phillip Hammond, published the 2018 Budget on 29th October 2018. In this Budget he announced plans for tax, business, travel and environmental issues among other financial matters. In this piece we have summarised some of the key points.

Personal tax

  • The personal allowance threshold, the rate at which people start paying income tax at 20%, to rise from £11,850 to £12,500 in April 2019 – a year earlier than planned
  • The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April 2019
  • Tax rates and thresholds are different in Scotland. The Scottish government’s Finance Secretary Derek Mackay will set out his plan for Scottish tax payers on 12 December.

Good news for business

  • £500m for the Housing Infrastructure Fund, designed to enable a further 650,000 homes to be built
  • Annual investment allowance to be increased from £200,000 to £1m for two years
  • Business rates bill for firms with a rateable value of £51,000 or less to be cut by third over two years
  • £900m in business rates relief for small businesses and £650m to rejuvenate High Streets
  • Extending changes to the way self-employment status is taxed, from the public sector to medium and large private companies, from 2020

Transport & environment

  • A £30bn package for England’s roads, including repairs to motorways and potholes
  • A new tax on plastic packaging which does not contain 30% recyclable material

There are a number of measures to attract popular attention whilst also there are some positives for business to encourage investment and to boost the construction sector. There is help also for small businesses in the retail sector, though whether it is enough will remain to be seen.

For full details on the Budget announcements please visit the Government website: https://www.gov.uk/government/topical-events/budget-2018

If you would like to discuss the potential impact of the Budget on yourself or our business contact us.

Ian Lowry

 

 

Leave a comment

 

 

Comments left on this post

 

 

 

Next Previous