Following the delivery of the Budget earlier this week, we have summarised the key announcements below. If you would like to discuss any of the below and its practical implications for you and your business, please get in touch.

Personal Tax

The amount that an individual can earn before paying income tax will remain the same at £12,500 and the threshold for higher rate income tax (40%) remains at £50,000

The Dividend Allowance for 2020/21 remains at £2,000.

31 JANUARY 2020

Deadline for 1st payment on account for 2019/20 tax year.

5 APRIL 2020

Deadline for claiming tax overpaid for the 2015/16 tax year under Self-Assessment

Letting Relief:

Currently if you sell a residential property which was at one time your main residence but has then been rented out for a period of ownership, it is possible to deduct ‘letting relief’ of up to £40,000 from any capital gain.

The Construction Industry Scheme (CIS) Reverse Charge was originally planned to be introduced from 1 October 2019 but has now been delayed until 1 October 2020.

The IR35 ‘off-payroll’ rules will be extended to the private sector from April 2020 onwards, directly affecting a large number of contractors who are currently working through a Personal Service Company or recruitment agencies.

Personal Tax

The amount that an individual can earn before paying income tax increases on 6 April 2019 to £12,500 (from £11,850). The threshold for higher rate income tax (40%) increases to £50,000 (from £46,350).

The Dividend Allowance for 2019/2020 remains at £2,000, following the reduction on 6 April 2018.

31 JANUARY 2019

Deadline for 1st payment on account for 2018/19 tax year.

1 APRIL 2019

Introduction of ‘Making Tax Digital’ for VAT registered businesses with turnover in excess of £85,000…