Autumn 2018 Budget

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Autumn 2018 Budget

Every year HM Treasury will present government with a budget. This will be generated by combining revenues collected from HM Revenue & Customs throughout the year. We all gawp and watch as the red briefcase is taken into parliament and explained to MPs and the Prime Minister. There is, if you have ever stayed and watched the whole thing, a lot to take in from the Chancellor of the Exchequer.

The 2018 budget was brought forward this year and was presented by Philip Hammond on Monday 29th October to Parliament – the date was brought forward due to ongoing Brexit negotiations. As the Brexit saga rumbles on with the EU and government, there was always going to be slight concern for this budget. Hammond said that a new budget would be needed in the event of a no deal. To make sure that you have all the information about the Autumn 2018 budget, it isn’t viable to flick through the huge document.

To understand exactly what is involved in the budget and what that means for you, it requires a little help. We have created a rundown of the Autumn 2018 budget which will display the good aspects as well as the negatives for businesses and individuals.

 

Three good points to take from the latest Autumn budget:

  1. Increased personal allowance: From April 2019 you will be allowed to earn up to £12,500 each year without having to pay tax. This will offer a range of savings for those around this threshold.
  2. First time buyer support: Stamp Duty Land Tax (SDLT) relief is going to be extended and backdated to 22 November 2017. This will ensure that all shared ownership property purchases that fall under the scheme will not have to pay SDLT.
  3. Higher tax threshold increased: You can now earn up to £50,000 per annum without having to move up to the next tax bracket.

 

Three bad aspects to consider:

  1. VAT registration threshold: The freezing of VAT registration could prove problematic for smaller businesses who will have to register for VAT. This is not in line with inflation.
  2. Capital allowances: Any fall in capital allowances will mean trouble for businesses. The special capital rate has decreased from 8% to 6%.
  3. National insurance for employers: The allowance credit of £3,000 is limited to smaller businesses. These are classed as those with National Insurance bills under £100,000.

The Autumn Budget, despite the uncertainty that has spawned from Brexit, isn’t as drastic as recent years and provides a number of welcome additions. However, there are many tricky regulations and changes that have made it more difficult for smaller businesses and employers.

On top of this rundown, it is important that you understand how the budget will affect your situation. Whether you are an individual uncertain about your tax returns or you’re the owner of a business worried about your employees, there is help for you. By visiting our website at Jackson Accounts and speaking with our team, we will be able to beat our way through the 106-page 2018 budget to find the things that matter to you.

Get in contact to discover more.

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