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Personal and business tax changes you should be aware of this April

It’s that time again, the new tax year starts on 6th April 2019. Each year sees new rules and regulations being introduced and 2019 is no different as it is set to include a lot of big changes.

Here’s a summary of what you can expect.

Wage increases

Both the National Living Wage and the National Minimum Wage will increase. The rates change every April and apply across the UK.

Here are the new rates for 2019:

25 and over - £8.21

21 to 24 - £7.70

18 to 20 - £6.15

Under 18 - £4.35

Apprentice - £3.90

More of your income will be tax free

The personal allowance is going up to £12,500 meaning that you don’t have to pay income tax on the income you receive below this amount. This means a typical basic-rate taxpayer will take home £130 more than in 2018-19.

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.

Fuel duty will remain frozen

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.

Automatic enrolment contributions will increase

The minimum contributions you and your staff pay into your automatic enrolment workplace pension scheme will be increasing and it is your responsibility to make sure the increases are implemented.

The new rates for 2019 are as follows:

Employer minimum contribution: 3%

Staff contribution: 5%

Total minimum contribution: 8%

The marriage allowance is increasing (slightly!)

The amount you can save by using the marriage allowance will increase marginally from £238 to £250 for the next tax year.

Buy-to-let profits

Higher-rate taxpayers buying rental properties with a mortgage are to pay more tax.

From Saturday, landlords will only be able to deduct a quarter of the interest they pay on their mortgage from the rental income they declare to the taxman — down from 50 per cent.

By 2020/2021, they will not be able to deduct anything. Instead a new 20 per cent mortgage interest tax credit will be phased in.


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