Tax Year 2019/2020 has started on 6 April 2019. Below you can find lots of useful information about changes in Personal and Business Tax.
Personal Allowance has increased to £12 500 from £11 850, what leads to tax saving of £130.
Also the higher-rate threshold which is 40% increased to £50 000 from £46 350 comparing with previous year.
The National Minimum Wage and National Living Wage has increased for about 5%.
The Dividend Allowance remains the same as in the previous year at £2000.
Once it is reached, basic rate taxpayers will pay 7.5% tax on dividends and higher rate taxpayers will pay 32.5%. Additional rate taxpayers will be charged 38.1% tax on dividend.
The Capital Gains Tax Annual Allowance has increased to £12 000.
Pensions
The Lifetime Pensions Allowance has been increased in line with inflation (CPI) for the 2019-2020 tax year and stands at £1,055,000, from £1,030,000.
The Workplace Pension. The minimum amount which needs to be paid into employee's workplace pension increased from 5% to 8% with employer minimum contribution of 3%.
ISA
The Junior Isa allowance is £4,368 for the 2019-2020 tax year, up from £4,260.
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