Doesn’t time fly – we are now in to 2019/20. There are few changes to update our blog readers on;
The personal allowance has increased from £11,850 to £12,500 per year. This means you can earn £12,500 without paying any tax.
Basic rate band
The basic rate band has also been extended to £50,000. This is an increase of £3,650 on the previous basic rate band of 2018/19.
The national insurance free bracket continues to be out of line with the tax threshold. The new national insurance free amount being £8,628 per year.
Auto enrolment pension
From 1st April all employees aged between 21 and 65 and earning over £10,000, or indeed the employees under this threshold that have chosen to opt in, will now have to contribute 5% in to their pension – the employer contribution now being 3%. Employees can choose to opt out.
If you would like any further information on how the changes impact on you and your business, you can contact the team on 01530 414 285.