From 6 April 2019, the thresholds will change to the amounts set out below (this does not include rates in Scotland).
Personal allowance £12,500 £11,850
National Insurance (PT) £8,632 £8,424
Higher rate threshold 40% tax £50,000 £46,350
Marriage allowance £1,250 £1,185
Limited company shareholders:
Dividend allowance £2,000 £2,000
The dividend allowance is particularly important to owner managed businesses. The allowance of £2,000 for the year to 5 April 2020 is set at a rate of 0%, meaning any dividend income in the year up to £2,000, will be taxed at 0%.
Corporation tax is set to remain at 19% (the same as for the year to 31 March 2019).
There were discussions around raising the rate of National Insurance on Self-employed profits. Class 4 National Insurance is set to remain the same for the year to 5 April 2020.
Class 4 National Insurance 9% 9%
Rates for taxable profits
over £8,632 up to £50,000 £46,350
Class 2 National Insurance £156.00 £153.40
Capital Gains Tax (for individuals):
Annual exemption £12,000 £11,700
The taxable turnover threshold which determines whether a business or person must be registered for VAT, will remain at £85,000.
The taxable turnover threshold which determines whether a business or person may apply for deregistration will remain at £83,000.