Latest News

More Money for NHS and an End to Austerity?

As previously announced, these were the main themes of the Chancellor Phillip Hammond’s third budget but what we were waiting to hear was where the extra money was going to come from? Had he found a “Magic Money Tree”, or would tax and borrowing have to increase? 

Personal Allowance and Higher Rate Limit Increased Early

The Government’s manifesto pledge back in 2015 was that the personal allowance would rise to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the Chancellor has decided to bring forward these increases one year early from 2019/20, taking an estimated 1 million taxpayers out of higher rate tax.

More Rates Relief for Small Businesses

There has been much lobbying from the small business sector to reduce business rates to enable traditional retailers, in particular, to compete with internet traders.

VAT Registration Limit Continues to be Frozen

The VAT registration limit normally increases in line with inflation each year. However, It was announced last year that the limit would be frozen at £85,000 until 1 April 2020. It has now been announced that the limit will now remain at the same level until 2022. The deregistration limit will remain at £83,000.

Annual Investment Allowance Increased to £1 Million

The Annual Investment Allowance (AIA) which provides businesses with a 100% write off against profits when they acquire plant and machinery has been temporarily increased from £200,000 to £1 million for two years from 1 January 2019. This will again mean that the timing of expenditure will be critical. It may be advantageous to delay expenditure until after 1 January 2019 to get the full benefit in certain circumstances.

Capital Gains Tax Entrepreneurs' Relief Changes

The Chancellor has announced that the minimum qualifying period for Capital Gains Tax entrepreneurs’ relief will be increased from 12 months to 24 months for disposals on or after 6 April 2019.

IR35 "Off-Payroll" Rules to be Extended to Private Sector

Very controversially, the Government have decided to extend the rules for personal service companies in the public sector to workers in the private sector from April 2020.

No Changes in Tax Rates

The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over £150,000.

There had been rumours that the dividend rate might be increased, but dividends continue to be taxed at 7.5%, 32.5% and then 38.1% depending upon whether the dividends fall into the basic rate band, higher rate band or the additional rate. Note that only the first £2,000 of dividend income is now tax-free.

Leadership Development

It is the management team’s responsibility to invest in, develop and grow the company’s next generation of leaders.

In order to construct a solid framework with which you can develop the next generation of leaders in your business, it’s best to start by identifying the attributes and capabilities of the existing leadership team and work from there to develop a programme that builds on this foundation.

Effective Mid-Year Performance Reveiws

Conducting mid-year performance reviews gives managers the opportunity to check in with employees in order to ensure that their objectives, project work and general day-to-day jobs are aligned with the rest of the business.

Even if your business doesn’t have a formal system in place for conducting mid-year reviews, it is still worth taking the time to sit down and have a catch up with each of your team members. 

Pages