New year, new rates...
With the end of the tax year coming to a close we've had a few enquiries from clients about new rates from April 2019. So I thought I'd drop the key changes into a blog post.....
Minimum Wage From 1st April 2019 all employees (with the exception of Directors) must be paid the following minimum wage rates: 25 and over £8.21 per hour 21 to 24 £7.70 per hour 18 to 20 £6.15 per hour Under 18 £4.35 per hour Apprentice £3.90 per hour
Pension Contributions The minimum pension contributions for employees that fall under automatic enrollment will rise from 6th April to 8% (3% from the employer and 5% from the employee)
Tax and National Insurance The two main figures for owner manged limited companies are the primary threshold and the higher rate tax bracket. The monthly salary for most Directors (which is normally the primary threshold) will increase to £719 (from £702) and the higher rate threshold has increased to £45,000. Therefore, if a director is paying themselves £719 per month the amount they can withdraw in dvidends before hitting the higher rate threshold is £3,031, this is providing there are no other matters to consider such as other income sources and avaliable profits for dividend.
Mileage Rates HMRC have not increased the mileage rate of 45p per mile for the first 10,000 business miles then 25p thereafter, but one additional claim that is often missed is the additional 5p per mile that can be claimed if you are carrying a passenger.
For any specific advice in relation to this please get in touch and we will be more than happy to help.
Happy New Tax Year