We have tried to identify and highlight the key factors from the Autumn/Spring Statement, please feel free to call Chris on 01522 543500 if you have any further queries

MAKING TAX DIGITAL This will become mandatory for income tax; however, it is currently deferred until at least April 2020. From 1st April 2019 all VAT registered businesses with turnover above the VAT threshold (currently £85k) will be required to file all VAT returns online and must be backed up by digital record keeping. Please contact us to help you with this.

PERSONAL TAX ALLOWANCE For the 2019-20 tax year the personal tax allowance is set at £12,500 (2018/19 £11,850).

CORPORATION TAX RATE The main rate of corporation tax remains at 19% until 1st April 2020 when it will further reduce to 17%.

DIVIDEND TAX Tax-free dividend allowance remains unchanged at £2,000.

INTEREST RELIEF FOR RESIDENTIAL LANDLORD This has been implemented since 6th April 2017, instead of deducting the interest from the letting profit before the profit is taxed, the individual will only be allowed an income tax deduction at the basic rate of 20% on interest paid. Landlords will be able to claim 2018/19 50% interest v rents 50% Basic Rate Relief 2019/20 25% interest v rents 75% Basic Rate Relief 2020/21 All Basic Rate Tax Deduction

VAT REGISTRATION AND DE-REGISTRATION LIMITS No changes to the current limits which are:- • Registration threshold remains at £85,000 • Deregistration threshold remains at £83,000

OTHER TAX-FREE INCENTIVES Trading allowance of £1,000 is the profit allowed before having to register for tax Tax free income from property (i.e. drive rental) £1,000 Rent a room (while living in property) £7,500

NATIONAL MINIMUM WAGE – NEW RATES FROM 1st APRIL 2019 The new national minimum wage rates from 1st April 2019 are as follows: • £8.21 per hour – 25 yrs. old and over • £7.70 per hour – 21-24 yrs. old • £6.15 per hour – 18-20 yrs. old • £4.35 per hour – 16-17 yrs. old • £3.90 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

PENSION PAYMENTS From 1st April 2019 pension payments from employees will increase to 5% and employers to 3%.

CHANGES TO DIRECTORS SALARIES If you claim employment allowance then the new suggested director salary should be £1,040 per month, if however, you are not eligible to claim employment allowance then the suggested director’s salaries will be £715 a month.