There are numbers of changes that will affect the personal and business taxes for 2019/20. We have endeavored to highlight some of the key changes coming into effect from 06th April 2019.
Tax-freeamount or Personal Allowance will increase from £11,850 to £12,500 in year 2019/20.
- The higher rate of tax @ 40% will now be paid on income on £50,000 or more rather than
currentthreshold of £46,350.
Tax-free Dividend allowance of £2000 has sustained for
Changes in Minimum Wages
From 01st April 2019, hourly national minimum wage for UK adults aged 25 or more will be increased from £7.83 to £8.21. For other changes to national minimum wage, please visit Gov.UK.
Expert Tip* by UGS Accountants!
With above changes in mind, UGS accountants suggest the following tax efficient amounts to be withdrawn by Ltd company directors (for individuals with no other source of income):
Estimated Tax Liability: £2,662.50
We strongly suggest that you contact UGS accountants for individually tailored advice best suited to your personal and business circumstances before planning your salary and dividends withdrawals.
At UGS Accountants, we offer specialised advice and support to new and developing small businesses. We recognise the importance of how different each business and its needs can be. For this reason, we proactively work with you to make the structuring of business, preparation of your accounts, bookkeeping, VAT and tax return a highly beneficial process, not merely a statutory one.
*Please see HMRC website for Scottish Tax Changes