The new tax year begins today on 6th April 2020, with many new changes being introduced, including additional changes due to Coronavirus. We’ve put together a summary of these updates, so you can see how you and your business will be affected.
The amount you can earn before paying any income tax, remains the same at £12,500.
The amount you can earn before paying National Insurance has risen to £9,500 per year.
National Minimum Wage
On 1st April 2020, the rates increased for National Minimum Wage. More employers than ever will be directly affected. See what the new rates are here.
Tax Bill deferments
Due to COVID-19, tax payments for individuals due in July 2020 can now be deferred to January 2021.
The government have postponed IR35 changes to April 2021.
Capital Gains Tax
The CGT allowance has increased from £12,000 to £12,300 for individuals and representatives, and from £6,000 to £6,150 for trustees of settlements.
This is the amount you can make from the increased value of your possessions tax-free.
The tax rates for company cars are changing, meaning good news if you’re looking at a fully electric vehicle. Read more about benefit in kind rates here.