What's Changing In The New Tax Year?

Saturday 6th April was the start of new tax year 2019/20, and changes have been made to both personal and business taxation ...

There is a lot of turmoil in the country at the moment. With Brexit consuming the thoughts of everyone from politicians to the man in the street, it is easy to forget that the economy marches on and the Treasury keeps a tight hand at the tiller. So, what's changing?

There is certainly good news for taxpayers:

The personal allowance has been increased from £11,850 to £12,500
The basic rate tax bracket has been increased from £34,500 to £37,500

This means that the threshold at which the higher rate tax is applied is £50,000 for those entitled to the full personal allowance. Basic rate taxpayers will be £130 better off and higher rate taxpayers are £730 better off. The additional rate of tax of 45% remains payable on taxable income above £150,000 though.

What about businesses? Yes, good news there too:

The annual investment allowance is temporarily increased for 2 years from £200,000 to £1 million in relation to qualifying expenditure incurred from 1 January 2019 onwards.
Limited companies will see the rate of corporation tax fall from 1 April 2020.

As with all Chancellor giveaways, there is some take in the other direction. In order not to distract from this being a positive blog post at this problematic time, I will resist from mentioning these, but happy of course to talk to anyone with tax concerns.

If you'd like to find out more about tax changes in the new tax year, then do give me a call on 01908 774320 or click here to ping me an email and let's see how I can help you.

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More about Roger Eddowes ...

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

What's Changing In The New Tax Year?

Happy New Year to all tax advisors ...