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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