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Updates from the Clayton & Brewill team.
Spring Statement 2019
On 13 March 2019, Chancellor Philip Hammond presented his Spring Statement. Nottingham chartered accountants Clayton & Brewill provides a brief review of the Statement, along with some changes that are coming into effect in the near future.
Unsurprisingly, the Spring Statement 2019 didn’t really reveal anything that we didn’t already know. The Chancellor pledged last year that key announcements would be covered in an Autumn Budget and from the Spring Statement, it is clear that he intends to stick to that promise.
The Chancellor revealed that the public purse is doing pretty well and the government is on track to have a smaller deficit than expected this year. However, unsurprisingly economic growth remains subdued and the Bank of England predicts that the economy is set to expand at its slowest rate this year due to the uncertainty surrounding Brexit. This slowdown is, however, expected to be temporary.
Regarding Brexit, the Chancellor shared that he was confident that MPs will eventually agree a Brexit deal and that leaving without a deal would mean significant disruption in the shot and medium term for the economy.
Forthcoming changes
Whilst there were no major announcements revealed in the Spring Statement. There are some changes that were announced in the Autumn Budget that will soon be coming into effect.
Income tax
From 6 April 2019, the personal tax allowance will rise from £11,850 to £12,500, and the higher-rate threshold will rise to £50,000
Minimum wage rates
The minimum wage for workers 25 and over will go up from £7.83 an hour to £8.21 an hour.
People aged 21 to 24 will see their minimum hourly rate rise from £7.38 to £7.70 an hour; 18 to 20-year-olds will see a rise from £5.90 an hour to £6.15 an hour and people of school age but under 18 will see their money go up from £4.20 an hour to £4.35.
The minimum rate for apprentices is also rising – from £3.70 to £3.90 an hour, as long as they are under 19, in the first year of their current apprenticeship.
Pension contributions
Pension contributions are set to rise again from April. More details on this can be found in our article here.
Capital gains tax (CGT)
The CGT annual exemption will increase to £12,000 for individuals and £6,000 for trustees from 6 April 2019.