It seems we’re about to enter the era of a £50,000 higher tax rate threshold a year earlier than planned. The rise in the level at which taxpayers pay 40% income tax will now be law from April 2019. It is accompanied by a £650 rise in the level at which people pay tax at all. At 5.4% that’s well above inflation and takes nearly half a million people out of the tax net. On the negative side the thresholds for paying National Insurance Contributions are due to rise too, likely to mean higher costs for employees and self-employed; the employers already pay 13.8% on the entire salary.
For more information view our full Budget report, or if you would like to discuss anything raised, please contact Clare Munro firstname.lastname@example.org 020 7490 7766 or speak with your usual contact partner.