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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