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07.11.2018

The 2018 Budget

Last week Philip Hammond delivered the 2018 Budget and with it came a range of changes that may affect you and your business.  Our summary of the budget that is available on the resources page of our website not only focuses on these tax measures that but provides comment to help you decipher them.

In what has been described as a “give away budget”  the key changes in the 2018 Budget for individuals include:

  • an increase in the personal tax allowance to £12,500 from April 2019;
  • higher rate personal tax band to start at £50,000 from the same date;
  • the qualifying period for entrepreneur’s relief to increase to 24 months from 6 April 2019;
  • from April 2020 lettings relief will only be available where the owner of the property is in shared occupancy with the tenant;
  • the final period allowance for Principle Private Residence being reduced to 9 months (from the current 18 months);
  • the abolition of Stamp Duty for first time buyers up to the value of £300,000;
  • a delay in the removal of Class 2 National Insurance contributions until 2019

Changes in the 2018 Budget for businesses include:

  • the annual investment allowances to increase to £1m from January 2019 for 2 years – if you have large potential capital spend you may want to defer expenditure until the new year;
  • an introduction of commercial/industrial buildings allowances enabling capital allowances to be claim on the building costs at 2%;
  • a reduction on capital allowances on “integral assets” from 8% to 6%;
  • the abolition from April 2020 of enhanced capital allowances on technologies on the Energy Technology and Water Technology lists;
  • the VAT registration threshold being frozen for two years,
  • adding a restriction in the payable tax credit under R&D from April 2020, limited to three times the company’s total PAYE and NIC liability for the year;

In other reforms:

  • From 6 April 2020 HMRC will become a preferential creditor for VAT, PAYE, Income Tax, employee NICs and CIS deductions (i.e. the amounts businesses collect on behalf of HMRC);
  • the Apprenticeship co-funding requirement of “small” businesses will reduce to 5%, down from 10%.

Our App is now updated with the very latest rates, allowances and information. The App has recently been updated and can be downloaded using the links and activation code on our resources page. Why not download it now for an in hand reference source and other useful tools.

If you wish to discuss any elements of the budget and how they will affect you, please contact a member of the team on the usual numbers.

CNM Advisory

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