Summary: The Autumn Budget 2018
- October 31, 2018
- Posted by: admin
- Category: Business Growth, Business plans, Contractors, Expenses, Finance & accounting, Investment, Property, Start-ups, Tax
Summary: The Autumn Budget 2018
The following paragraphs summarise the key tax points arising from the 2018 Autumn Budget based on the documents released on 29 October 2018. Please remember that these proposals are subject to amendment during the passage of the Finance Bill through Parliament. We will, of course, keep you informed of any significant developments.
Any change for the self-employed?
The Treasury believes a third of people claiming self-employed status as a “personal service company” are actually working in the same way as employees and should pay more income tax and national insurance.
Having changed the rules on this in the public sector, it will now do the same in the private sector from April 2020. However, this will only be used for those working for large and medium-sized businesses.
Campaigners immediately described it as a “fresh raid” on the self-employed
Personal taxation and wages
- 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 – 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
- After that, the two rates will rise in line with inflation
- National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from 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.
Stamp duty and housing
- All first-time buyers purchasing shared equity homes of up to £500,000 will be eligible for first-time buyers’ relief
- £500m for the Housing Infrastructure Fund, designed to enable a further 650,000 homes to be built
- Lettings relief limited to properties where the owner is in shared occupancy with the tenant
- New partnerships with housing associations in England to deliver 13,000 homes
- Guarantees of up to £1bn for smaller house-builders
Brexit
- Extra £500m for preparations for leaving the EU
- Spring Statement next March could be upgraded to full Budget if needed
- A commemorative 50p coin to mark the UK’s departure from the EU