What Does 2018 Mean For Tax?

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June 24th 2018
Week 12
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What Does 2018 Mean For Tax?

It's a new year... but not a new tax year for another 3 months! Here we outline key tax things to look out for this year.

We are now well into the start of 2018, 2.7 percent of 2018 now behind us in fact. It's a slow week for all news at this point but we can give a quick recap on things to expect this year.

As always, you can use our 2017/2018 Tax Calendar to get all the key dates and download them into your calendar applications.

Only a couple of months ago we had the Autumn Budget for rUK (Rest of United Kingdom) and then the proposals from Scotland a month later. These events highlighted the following key points to expect later this year:

  • The tax return deadline is just around the corner - with only 3 weeks to go now. Remember if you want to pay by a personal registered credit card you must do so before January 13th 2018. Many used the Christmas and New Year break to get their tax return out of the way.
  • The Scottish could see major changes to their taxes if the proposals to bring in 5 tax bands is ratified on February 14th 2018. We have already updated our calculators for these changes in anticipation - but are still waiting on publication for the way the government intends to deal with pensions tax relief issues when there are 5 tax bands!
  • It will be the first Spring Statement on March 13th as we now use the new Budget system. Last March (2017) was the final budget to be held in the Spring.
  • National minimum wage to increase from April 1st - the Living wage was increased in November 2017.
  • April 6th 2018 will see the personal tax free allowance rising by £350 to £11,850.
  • April 6th 2018 will see the dividend allowance falling by £3,000 to £2,000.
  • People with Plan 2 Student Loans will see big reductions in the amount deducted from their pay. From April 6th the threshold at which pay is deducted at a 9% rate will rise by £4,000 to £25,000. But watch out for the rise in the rate of interest on those loans.
  • From April 6th, for those in rUK, the higher rate threshold will kick in £1,000 later at £34,500 (this is on gross pay after other allowances have been deducted).

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