2018 Budget Headlines
Yesterday (29th October) Philip Hammond delivered his third Budget as chancellor, which was widely broadcast across the media, including BBC News. Some of the key points our clients might be interested in are:
Personal Taxation and Wages
From April 2019: the personal allowance threshold, (the rate at which people start paying income tax at 20%) is to rise from £11,850 to £12,500; and the higher rate income tax threshold (the point at which people start paying tax at 40%), is to rise from £46,350 to £50,000. After that, the two rates will rise in line with inflation
The National Living Wage is increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019
Housing
All first-time buyers purchasing shared equity homes of up to £500,000 will be eligible for first-time buyers’ relief
Work allowances for universal credit to be increased by £1.7bn
Lettings relief limited to properties where the owner is in shared occupancy with the tenant
Welfare and Pension
Work allowances for universal credit to be increased by £1.7bn
2.4 million working families with children to benefit by £630 a year
An extra £1bn to help welfare claimants transfer to the new consolidated benefit
Business and Digital
Annual investment allowance to be increased from £200,000 to £1m for two years
Contribution of small companies to apprenticeship levy to be reduced from 10% to 5%
Business rates bill for firms with a rateable value of £51,000 or less to be cut by third over two years
Measure to benefit 90% of independent shops, pubs and restaurants, cutting bills by £8,000
£900m in business rates relief for small businesses and £650m to rejuvenate High Streets
Extending changes to the way self-employment status is taxed, from the public sector to medium and large private companies, from 2020
Education and Health
Confirmation of an extra £20.5bn for the NHS over the next five years
A minimum extra £2bn a year for mental health services
New mental health crisis centres, providing support in every accident and emergency unit in the country
More mental health ambulances and a 24-hour mental health crisis hotline.
An extra £700m for councils, for care for the elderly and those with disabilities
£10m for air ambulances
A one-off £400m “bonus” to help schools buy “the little extras they need” this year
To keep up to date with the latest news in law and order, please keep an eye on our blog.