New tax year means new investment opportunities and new payroll changes
A new tax year began on 6 April 2018, which means that for savers, you can start afresh and can start thinking about investing more money into your ISAs to take advantage of their tax-free status.
- The maximum amount that can be paid into ISAs is £20,000 per tax year
- The limit on Junior ISAs or Child Trust Funds is currently £4,128
- The Lifetime ISA, (LISA) is available for anyone between the ages of 18 and 40 and enables you to save up to £4,000 each year. You will receive a Government bonus of 25 per cent on any savings deposited before your 50th birthday
If you are an employer, you need to be aware that a number of payroll changes came into effect at the start of April. The National Living Wage, for workers over 25 and the National Minimum Wage – for those aged 24 and under have increased.
Minimum auto enrolment contributions for both employers and employees have also gone up and there are hefty fines for businesses that don’t comply.
Lastly, both business owners and self-employed workers will need to submit their annual P60 documents for the 2017/18 tax year by the end of May. If you haven’t started working on these yet, now might be a good time to do so, to save the last minute rush.
For more information and guidance on both personal and business tax planning, along with our range of payroll and auto enrolment services, please contact us.