RECRUITERS EVERYTHING YOU NEED TO KNOW ABOUT THE 2018 BUDGET
INCOME TAX – PERSONAL ALLOWANCE AND HIGHER RATE THRESHOLD INCREASE
- The limit at which people start paying tax will be raised to £12,500 from 6th April 2019 in line with inflation.
- Higher rate tax threshold increased from £46,350 to £50,000 from 6th April 2019.
EMPLOYMENT – NATIONAL LIVING WAGE AND APPRENTICESHIP LEVY
- From 1st April 2018, National Living Wage will increase from £7.83 to £8.21
- Contributions of small companies to the apprenticeship levy to be reduced from 10% to 5%.
INVESTMENT IN EDUCATION AND HEALTHCARE
- £20.5 million is being invested in the NHS over the next five years
- £2 billion is being invested in mental health services
- £10 million is being made available for air ambulances
- £10 million is being made available for mental health care for veterans
- £700 million to local councils for care for the elderly and those with disabilities
- A one-off bonus of £400 million to be made available to help schools
- £1.7 million in education programmes
INVESTMENT IN SECURITY TRANSPORT AND INFRASTRUCTURE
- £420 million will be made available to tackle potholes, bridge repairs and other minor works.
- E -passport gates available to visitors from the US, Canada, New Zealand, Australia and Japan as well as EEA.
- £160 million for counter-terrorism police.
- £1 billion for armed forces
IR35 EXTENDED TO 2020
The Chancellor announced that the IR35 ‘off payroll’ rules will be extended to the private sector from April 2020. This will apply when clients are ‘large or medium’ sized businesses.
Entrepreneurs relief has been amended in the 2018 budget by extending the qualifying period from 12 months to 2 years with the aim of encouraging longer term investment in business. While keeping the tax at 10% on any gains realised.
BEER AND FUEL DUTY FROZEN
Great news for recruitment agencies covering business mileage and network meetings and events. The cost of beer, cider and spirits have frozen along with fuel. However, wine will have to be no longer on the menu as the tax on a single bottle of wine has gone up a whole 7p.
In preparation of the Budget and the upcoming Brexit, TBOS will be inviting our TBOS community to educational seminars and podcasts whereby our team of financial advisors can discuss first-hand the changes that will take place and how we intend to support them through the upcoming economic turn of events.