NEW TAX YEAR 2019/2020

Here are some reminders of items that will affect employers and employees

Minimum workplace pension contributions to increase

New rates from 6 April 2019 the minimum contribution is 8% with at least 3% from the employer.

This is a nationwide change, involving millions of people and their employers across the country. Changes will take place in April 2019 - it's the law.

With effect from 6^th April 2019, Minimum total contributions are 8% (Minimum employee contributions is 3% and minimum employer contributions are 5%)

For more information go to http://www.workplacepensions.gov.uk

National Minimum Wage and National Living Wage to increase

The government has set new rates from 1^st April 2019.  The table below shows the current NMW rates followed by the new increased rates from April 2019. 

MTD – Making Tax Digital

HMRC are working on a completely new system whereby businesses report their profits quarterly, rather than annually. These reports will have to be submitted online via compliant software. HMRC will not be providing this software.

April 2019 – VAT Registered businesses with turnover over £85,000 will report quarterly for VAT purposes only. 

 For more information: https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

Income tax: Personal allowance and base rate limit from 2019-2020

The Personal Allowance is set to increase to £12,500 for 2019 to 2020. The basic rate limit will be increased to £37,500 for 2019 to 2020. As a result, the higher rate threshold will be £50,000 in 2019 to 2020.

Changes to the basic rate limit, and higher rate threshold, will apply to non-savings, non-dividend income in England, Wales and Northern Ireland, and to savings and dividend income in the UK.

The National Insurance contributions Upper Profits and Upper Earnings Limits are aligned to the higher rate threshold and will therefore also increase in 2019 to 2020.