Yesterday (29th October) Phillip Hammond announced his budget with a number of announcements. Here are the key points that you need to know:
National living wage
The national living wage will increase from £7.83 an hour to £8.21 from April 2019. A recommendation by the LPC (Low Pay Commission) for other wages can be seen on the table below
Current rate |
Future rate (from April 2019) | Increase | |
| NLW | £7.83 | £8.21 | 4.9% |
| 21-24 rate | £7.38 | £7.70 | 4.3% |
| 18-20 rate | £5.90 | £6.15 | 4.2% |
| 16-17 rate | £4.20 | £4.35 | 3.6% |
| Apprentice rate | £3.70 | £3.90 | 5.4% |
| Accommodation offset | £7.00 | £7.55 | 7.9% |
Tax free personal allowance
In April 2019 the personal allowance, currently at £11,850 will increase to £12,500. This has come earlier than planned and will be maintained in 2020
Higher rate threshold
In April 2019 the amount that you will have to earn to pay 40% tax will increase from £46,350 to £50,000
Universal credits
A £1.7Billion increase excising work allowances in universal credit will mean working parent and people with disabilities claiming universal credits will be £630 better off each year
Apprenticeship levy
As of April, large businesses will be able to invest up to 25% of their apprenticeship levy to supports apprentices in their supply chain
Smaller firms will pay half of what they currently pay for apprenticeship training, from 10% down to 5%. Leaving the remaining 95% for the government to pay
Digital Tax
The Government will introduce a UK digital services tax. Digital tech giants such as Facebook and Google will be taxed on the money that they make from UK users
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