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Autumn Budget 2018 – In a Nutshell

Autumn Budget 2018 – In a Nutshell
Wednesday, November 07, 2018

Recently, the Chancellor of the Exchequer delivered the last Autumn budget before Brexit. We weren’t expecting anything revolutionary because of how close it is to the hoped-for successful conclusion to negotiations with the EU. However, what was announced in the budget will certainly have an effect on your personal finances and likely an effect on your business finances too.

In this article, the Panthera team explain what the budget has changes in this quick 4 minute read.

IR35 reaches the private sector

The IR35 public sector reforms were rolled out in 2017 and now they’re set to reach the private sector. In 2020, “medium and large” businesses will now also face making a decision about whether to classify the agreements and working practices they have with their contractors as within the IR35 rules or not. The requirement has been extended despite the fact that there is no hard evidence of the extent of the impact on public sector workers so far and that what evidence there is so far is disputed.

Commentators believe that this extension of IR35 will be the government’s biggest newest revenue raiser. Roughly £1.3 billion a year is expected to come in by 2023-2024.

Personal allowance changes

The personal allowance (the amount of money you can earn before you are subject to income tax) is going to be raised. As of the 19th of April 2019, the allowance will raise from £11,850 to £12,500.

Tax band movement

Although no changes have happened to the tax rates themselves, there has been some movement in who falls into each band. More specifically, who falls into the higher rate tax band in England, Wales, and Northern Ireland.

Income bands (Eng/Wal/NI)

Qualifying Income

Applicable income tax rate

Personal allowance

Up to £11,850

0%

Basic rate

£11,851 to £50,000

20%

Higher rate

£50,001 to £150,000

40%

Additional rate

Over £150,000

45%

This change is in line with the government’s 2015 and 2017 manifesto commitments.

Scotland has its own taxations bands as follows…

Income bands (Scotland)

Qualifying Income

Applicable income tax rate

Personal allowance

Up to £11,850

0%

Starter rate

£11,851 to £13,850

19%

Basic rate

£13,851 to £24,000

20%

Intermediate rate

£24,001 to £43,430

21%

Higher rate

£43,431 to £150,000

40%

Additional rate

Over £150,000

45%

The Scottish Parliament haven’t expressed any interest in moving the tax bands any time soon – in fact, recent press reports suggest that they are vehemently against doing so with some politicians calling the Chancellor’s move “shameful”.

Annual Investment Allowance gets temporary boost

A contractor limited company can invest £1,000,000 a year into capital items as opposed to the previous maximum of £200,000. This change begins on the first of January and ends after two years.

Employment costs rise

If you’re an employer, then you will be forced to pay your employees aged over 25 (who aren’t first-year apprentices) a higher hourly rate. The National Living Wage is raising from £7.83 an hour to £8.21 an hour. This change comes into effect on the 6th of April 2019.

Entrepreneurs’ relief changes

The qualification requirements for Entrepreneurs’ Relief (commonly used in Members’ Voluntary Liquidation procedures) have been changed. Members’ Voluntary Liquidation allows business owners to extract remaining cash from their bank accounts at a 10% tax rate by using Entrepreneurs’ Relief.

Previously, in order to qualify for Entrepreneur’s Relief, you must have held the shares in your company for at least 12 months. Now, this has been raised to 24 months.

Employment allowance

The Employment Allowance provides £3,000 worth of relief against Employers’ National Insurance Contributions. This will only be applicable to businesses with an annual National Insurance spend of less than £100,000 as of the 6th of April 2019.

Accounting with Panthera

If you’re concerned about what this budget means for your business, get in touch with one of our accountants. For more information, call us on 01235 768 561 or drop us an email to enquiries@pantheraaccounting.com – we’ll be back in touch with you shortly.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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