Budget Update – Year to 5 April 2019

From 6 April 2018, the thresholds will change to the amounts set out below (this does not include rates in Scotland).

                                                     2019               2018

Personal allowance                             £11,850           £11,500

National Insurance (PT)                     £8,424              £8,164

Higher rate threshold 40% tax         £46,350           £45,000

Marriage allowance                             £1,185              £1,150

 

Limited company shareholders:

Dividend allowance                              £2,000               £5,000

The dividend allowance is particularly important to owner managed businesses. The allowance of £2,000 for the year to 5 April 2019 is set at a rate of 0%, meaning any dividend income in the year up to £2,000, will be taxed at 0%.

Corporation tax is set to remain at 19% (the same as for the year to 31 March 2018).

 

Self-employed:

There were discussions around raising the rate of National Insurance on Self-employed profits. Class 4 National Insurance is set to remain the same for the year to 5 April 2019.

Class 4 National Insurance                        9%                   9%

Rates for taxable profits

over £8,424 up to                                    £46,350          £45,000

Class 2 National Insurance                      £153.40         £148.20

 

Capital Gains Tax (for individuals):

Annual exemption                                     £11,700       £11,300