The Budget 2018 was released yesterday, and it seems it was a hugely anticipated budget for many reasons – Brexit and IR35 to name a few. Here are some of the main changes discussed in the budget:
Off-payroll working in the Private Sector
The changes made to the public sector last year are being rolled out to the private sector. From April 2020, if your client is a large or medium sized business, then the client will be responsible for determining your IR35 status.
We will be discussing the impact of these changes in a separate topic shortly.
The VAT registration threshold will remain at £85,000 for a further two years.
The Annual Investment Allowance is to increase from £200,000 to £1million for two years from April 2019.
Business rates for firms with a rateable value of under £51,000 will see their rates cut by one third over two years.
Small businesses will benefit from £900m in business rates relief.
£650m has been allocated to help rejuvenate high streets.
From April 2019, personal allowance will increase to £12,500. Furthermore, the higher rate tax threshold will also increase to £50,000. This is good news for contractors who will be able to withdraw more dividends at the basic tax rate of 7.5%.
The National Living Wage will be increasing from April 2019 from £7.83 to £8.21 per hour.
An extra £20.5billion will be put into the NHS over the next five years, together with £2billion for mental health services.
£30billion towards the roads in England, including repairs and potholes.
Beer, cider and spirits duties are frozen, with tobacco duty to continue to rise by inflation plus 2%.
Fuel duty to be frozen for the ninth year in a row.
To allow a further 600,000 homes to be built, £500m will be allocated to the Housing Infrastructure Fund.
Lettings relief will be available where the landlord shares the property with a tenant.
First time buyers will be exempt from stamp duty where they are purchasing a share equity home worth up to £500,000.