The Budget 2018
There were a few changes announced by Philip Hammond yesterday, which will affect small businesses;
- The personal allowance will increase from £11,850 to £12,500 from April 2019
- The higher rate income tax threshold will rise from £46,350 to £50,000 from April 2019
- In future the thresholds will increase in line with inflation
- The National Living wage will rise from £7.83 to £8.21 per hour from April 2019
- The Business rates bills for firms with a rateable value of £51,000 or less, will be reduced by a third over 2 years.
- From 2020 medium and large companies will decide whether a worker is an employee or self employed. This will affect contractors who, at the moment, decide themselves whether their contract is caught under the IR35 legislation. This change in responsibility has already occurred in the public sector.
The above changes don’t affect Scotland.