New Tax Year – New Tax Details

Changes in tax, wages and pensions for the 2018/19 tax year

As of today there are a few changes that you need to have have taken care of for yourself or your employees:

  • National Minimum Wage rates for all age ranges are going up.
    25 and over – from £7.50 to £7.83
    21 to 24 – from £7.05 to £7.38
    18 to 20 – from £5.60 to £5.90
    Under 18 – from £4.05 to £4.20
    Apprentices – from £3.50 to £3.70
  • The personal allowance goes up from £11,500 to £11,850. ¹
  • 40% tax threshold increases from £45,000 to £46, 350.¹
  • NIC (National Insurance  Contribution) thresholds go up from £157 to £162 per week for both employers and employees.
  • The Dividend Allowance is reduced from £5,000 to £2,000 for the 2018/19 tax year.
  • Auto-enrolment pension contribution rates have increased. Workers contributions increase from 1% to 3% of salary, while employer contributions go up from 1% to 2%.
  • If you are a landlord then income tax relief for mortgage interest against rental income is being reduced from 75% to 50%.

If you are struggling to keep up with all of the changes in your payroll and accounts systems why not use our Payroll Bureau and Bookkeeping services?

Get in contact to find out more. Call 01384 235549 or email info@lewissmith.com

¹Things are slightly different in Scotland. Contact us if you need the details.

 

Lewis Smith & Co. – Accountants for businesses in Tipton