With the 2019/20 tax year commencing on April 6th, there are some changes coming into play affecting individuals and businesses. As we know, every new year brings change, and there are a few changes that will have an affect on tax rates, employer payroll and regulation.
The personal allowance (the amount you earn before paying income tax) will rise to £12,500, and the higher rate threshold will rise to £50,000.
Phased increases in auto enrolment will bring employer contributions up to 3% and employees up to 5%.
There are also increases in Benefit in Kind rates for company cars. When your company pays for fuel you have used personally or allows personal use of a company van, it is now a Benefit in Kind.
Tax paid on these benefits is being increased from April 6th, with BiK on company vans increasing to £3,430 from £3,350, and the BiK on fuel for a van provided for personal use increasing to £655 from £633.
It is important to note that these fuel benefit charges only apply if the fuel is provided for personal use.
Business rates for companies with a rateable value of £51,000 or less will be reduced by a third between 6th April 2019 and 31st March 2021.
Would you like help and advice on this or any other issue?
Contact us straight away by telephoning 01932 564098 or email us using our ‘Contact Us’ page.
This note was published originally via the Fuller Spurling App in April 2019.
Please be aware that the information above may have changed in subsequent months.
This note is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or for taking professional advice.
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