With the new tax year starting this month, here is a summary of the changes in the tax system you need to be aware of.
The National Living Wage is going up to £8.21 an hour
Anyone aged 25 and over, and not in their first year of an apprenticeship, is legally entitled to at least the National Living Wage. Those under 25 and apprentices also benefit from rises in the Minimum Wage. The National Living Wage and National Minimum Wage rates apply across the UK.
The Personal Allowance is going up to £12,500
You don’t have to pay income tax on the income you earn below this amount. As a result of the change, a typical basic-rate taxpayer will take home £130 more than in 2018-19.
Fuel duty will remain frozen for the ninth year in a row
It will remain at 57.95 pence per litre across the UK. Fuel duty has been frozen for the ninth successive year, saving the average car driver £1,000.
Starling Bank partners with accounting software provider FreeAgent
Small retailers will get business rates relief
Small retailers will get one third off their business rates bills, this is part of more than £13 billion of rates relief since 2016.
New Enterprise Allowance has been extended
The New Enterprise Allowance provides mentoring, support and funding for benefit claimants to get their business ideas off the ground. Over 120,000 businesses have been launched though the NEA since 2011 and from April funding will continue for another 2 years with 30,000 new mentoring places available.
Machine learning and AI have massive potential for accountants
Access to Work is increasing by an extra £2,000 per year
From 1 April 2019 people will be able to claim up to £59,200 annually through the Access to Work scheme to help pay for additional support that they may need in the workplace. This can include workplace adaptations, assistive technology, transport and interpreters.