Autumn Budget 2018

Welsh rates of income tax

From April 2019, Welsh resident taxpayers will be subject to the new Welsh rates of income tax.

Welsh resident employees could be taxed at different rates to their English resident colleagues based on information held by HMRC. This will apply, even if the Welsh resident employee works in England.

It is the responsibility of the individual taxpayer to ensure HMRC holds correct contact details and is informed of any change in address. The employer or pension provider is not responsible for deciding an individual’s Welsh taxpayer status.

Self-employed individuals will be required to disclose their country of residence on their Self Assessment tax return.

If you are an employer, please encourage your employees to check if HMRC holds their correct contact details using their personal tax account Any changes of address can be managed through this facility.

Non-resident Capital Gains Tax on commercial property

From April 2019, UK properties held by non-resident individuals will be brought into scope of UK Capital Gains Tax.

The new single regime will cover both commercial and residential properties and remove exemptions which previously applied to non-resident companies.

Making Tax Digital for VAT

For VAT return periods starting April 2019, VAT reporting will be done under the government’s Making Tax Digital system. There will be a link from each transaction recorded in the business accounting software to the VAT return filed with HMRC. Businesses need to ensure that they have suitable software in place so they are ready to submit their first returns from April 2019.

Student loans

There are increases in Student Loan Plans 1& 2 thresholds from 6 April 2019 of £18,935 and £25,725 respectively. Student loan deductions will remain the same at 9% for both loans. The Post Graduate Loan product is repayable from April 2019 with a threshold of £21,000 and deductions taken at 6%.

Autumn Budget 2018