April 2018 Newsletter Cylchlythyr Misol Ebrill 2018
6th April means the start of a new tax year with various changes:
- The Personal Tax Allowance is increasing from £11,500 to £11,850 which will mean an increase of £70 of take home pay for all basic rate tax payers. The higher rate of tax increases from £45,000 to £46,350, which is an increase in take home pay of £340 for 40% tax payers.
- The Dividend Allowance will decrease from £5,000 to £2,000 in 2018-2019, a tax increase of £225 for basic rate tax payers and £975 for higher rate tax payers.
- The new Residence Nil Rate Band increases from £100,000 to £125,000 per person, which could mean Inheritance Tax savings of £10,000 for an individual or £20,000 for a couple where the family home is left directly to children or grandchildren.
- Mortgage Interest relief is being cut again for landlords who are higher rate tax payers.
Tax Returns for the 2017-2018 tax year can now be prepared and submitted once you have the relevant P60s and other information to hand. Please contact me if you wish to submit your tax return early in the new tax year.
Pension Payments by employers under the auto enrolment scheme will now increase to 2% and further rises will occur in future years. This is potentially good news for employees of small companies.
If you are planning any large financial transactions such as buying or selling a house, rental property, a new car or equipment for the business, please check with me first to ensure that the transaction is carried out in the most tax efficient manner. Early planning may lead to some tax savings. Where I am informed after the transaction has taken place, it may be too late to fully utilise all tax allowances which may have been available.
I now have a new website huwrobertsaccountant.com detailing services offered and also providing a library of all monthly newsletters prepared.