New tax year, new allowances

While the 6th of April may be just another Saturday to most people, it marks the start of a new UK tax year. On the most part, this means higher minimum wages and higher allowances!
Below is a short summary of some of the changes that are most likely to impact employees, the self-employed and business owners (Rates may not be applicable in Scotland):

National Living Wage and Minimum Wage

From 1st April 2019 National minimum wage will increase by the following:

  • 4.9% from £7.83 – £8.21 for those 25 and over
  • 4.3% from £7.38 – £7.70 (21-24)
  • 4.2% from £5.90 – £6.15 (18-20)
  • 3.6% from £4.20 – £4.35 (16 -17)
  • 5.4% from £3.70 – £3.90 (Apprentices)

Personal Allowance

Essentially your general-purpose allowance for tax-free income is increasing from £11,850 to £12,500, saving basic-rate taxpayers £130.

The Basic Rate Band

An increase from £34,500 to £37,500 means that higher-rate taxpayers will pay the lower rates of tax on an extra £3,000 of income.

Student Loan

New thresholds before you start repayments:

Plan 1Plan 2 (Loans on or after 01/09/2012)

National insurance

Class 1 NIC (Employees and employers start paying NIC): On earnings over £719p/m at 12%

Class 2 NIC (Flat rate for self-employed with earnings over £6,365): £3.00p/w

Class 4 NIC (Self-employed start paying Class 4 NIC): On earnings over £8,632p/a at 9%

Allowances remaining unchanged

Corporation Tax: 19%

VAT threshold: £85,000

Income limit to retain 100% of Personal Allowance: £100,000

Additional Rate threshold: £150,000

If you would like any further guidance on how the new tax year might affect you, feel free to get in touch.


Jake Lelliott PJCO Peter Jarman
Jake Lelliott
Elvis Presley

I have no use for bodyguards, but I have very specific use for two highly trained certified public accountants.

Elvis Presley