It is often difficult to keep up-to-date with changes in tax and wage related updates as they are often announced well in advance of them actually coming in to effect.
Here is a summary of the major ones due in 2019 that we want to highlight to business owner’s and SME finance managers:
- The National Living Wage (NLW) and National Minimum Wage (NMW) rates will increase in April 2019. The living wage, the effective minimum wage for people aged 25 or over, will rise to £8.21 from April, up from £7.83 an hour now. At the other end of the scale for those under 18 will get £4.35 up from £4.20, visit the Government website for a full list here
- Income tax threshold increases to £12,500 and the higher rate 40% threshold increase from £46,350 to £50,000.
- Auto-enrolment pension schemes will have an increase in minimum contributions from 2% to 3% for the employer and 3% to 5% for the employee.
- Basic pensions will increase from £164.35 to £168.60 per week.
- The state pension age will start to increase for both men and women from the current age of 65 to 66 by October 2020 and then up to 67 between 2026 and 2028.
- From April 6, 2019, the legal right to a payslip will be extended to include non-employees such as contractors and freelancers.
- Private organisations with 250 or more employees will again be required to publish their gender pay gap figures on April 4, 2019.
- From April 2019, all VAT-registered businesses with taxable turnover above the VAT registration threshold will have to keep VAT records in digital form and file their VAT returns using software.
Further changes will inevitably be introduced as the Brexit scenario plays out through the year, we aren’t even going to attempt to predict that one. What will happen though is the Chancellor will seek to keep the economy on track and will make adjustments as events unfold.
As with all businesses, the lack of information about the future of key aspects of trade is perhaps the most damaging element of the current position.
For further help with any business or personal tax planning matters please feel free to contact MCC Accountants and don’t forget the January 31st deadline is now only 3 weeks away.