30 Oct Autumn Budget Summary

The Autumn budget was announced yesterday.  Below is a summary of the main points for small businesses and self-employed workers:

  • Personal allowance increased to £12,500 from April 2019
  • Higher rate tax band increased to £50,000 from April 2019
  • Increase in annual investment allowance from £200,000 to £1,000,000 from 1 January 2019 for two years
  • A new structures and building allowance introduced immediately for tax relief on new commercial buildings – however the allowance is just 2% per annum
  • Employment allowance of £3,000 towards employers NI will be limited to small firms with total employers NI of less than £100,000
  • Entrepreneurs relief to remain – the qualifying period has been extended from 12 mths to 2 years
  • National Living Wage to increase by almost 5% to £8.21 from April 2019 for employees aged 25 +
  • VAT threshold of £85,000 to be frozen until April 2022
  • Commercial properties with a rateable value of £51,000 or less to have business rates reduced by 1/3 over the next two years
  • From April 2020 lettings relief (available for a property which was also let to tenants during a person’s ownership period) to be restricted so it is only available where the owner is in shared occupancy with the tenant


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