By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants. The Money Matters column appears in the Pembrokeshire Herald, the Carmarthenshire Herald and the Llanelli Herald newspapers.
This week, in Money Matters, we continue our spotlight on the latest Budget from Chancellor of the Exchequer Philip Hammond . . .
At Clay Shaw Butler chartered accountants, we have produced a summary on the tax measures which may affect you, your family and your business.
Here are some more points on personal tax changes before we start to focus on business tax changes in next week’s Herald –
Gift Aid – donor benefits:
Draft legislation has been issued which simplifies the donor benefits rules that apply to charities who claim Gift Aid tax relief on donations.
From 6 April 2019 the benefit threshold for the first £100 of the donation will remain at 25% of that amount.
For gifts exceeding £100, charities can offer benefits up to the sum of £25 and 5% of the amount of the donation that exceeds £100.
The total value of the benefit that a donor can receive remains at £2,500.
The new limits replace the current mix of monetary and percentage thresholds that charities have to consider when determining the value of benefit they can give to their donors without losing the entitlement to claim Gift Aid tax relief on the donations given to them.
Gift Aid Small Donations Scheme:
The Gift Aid Small Donations Scheme (GASDS) applies to small charitable donations where it is impractical to obtain a Gift Aid declaration.
GASDS currently applies to donations of £20 or less made by individuals in cash or contactless payment.
The limit will be raised to £30 from 6 April 2019.
National Living Wage (NLW) and National Minimum Wage (NMW):
Following the recommendations of the independent Low Pay Commission (LPC), the government will increase the NLW by 4.9% from £7.83 to £8.21 from April 2019.
The government will also accept all of the LPC’s recommendations for the other NMW rates to apply from April 2019, including increasing the rates for:
- 21 to 24 year olds by 4.3% from £7.38 to £7.70 per hour
- 18 to 20 year olds by 4.2% from £5.90 to £6.15 per hour
- 16 to 17 year olds by 3.6% from £4.20 to £4.35 per hour
- apprentices by 5.4% from £3.70 to £3.90 per hour.
The government has announced that the amount that households with children and people with disabilities can earn before their Universal Credit award begins to be withdrawn – the Work Allowance – will be increased by £1,000 from April 2019.
In addition the government has listened to representations made by stakeholders on Universal Credit, and has announced a package of extra support for claimants as they make the transition to Universal Credit.
The government remains committed to the introduction of Universal Credit.
The set of measures announced in the Budget are worth £1.7 billion per year.
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) – http://www.clayshawbutler.com/news/latest-news-for-business
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