New Changes to Consider for your UK Tax Refunds
The new tax reforms introduced by April 06th will see over 32 million people paying less tax in the UK. However for the self-employed it’s not all ‘good news’, we see a few changes which will not be beneficial to self-employed UK tax payers. How will all this affect your UK tax refunds? Read on to learn more.
Income tax cuts plus some not so beneficial changes for self-employed tax payers
Together with the rest of the UK taxpayers, the self-employed too will enjoy cuts on their income tax. However the new scheme which looks at digitising your UK tax return together with changes introduced to capital gains tax relief for owners of a business could take away a portion of those gains.
Changes coming in for 2019/20 tax year
Increases on in-come tax bands 2019/20
The net profit margin or your ‘personal tax free allowance’ before you become a UK taxpayer, rises by 5% to GBP 12,500 by 06th April; the previous figure was GBP 11,850.
However, the personal allowance margin for higher earners will be reduced.
- If net profits are over GBP 100,000 your personal allowance is decreased by GBP 1 for every GBP 2 you mark in as earnings which exceed the initial GBP 100,000
- Earn over GBP 124,000 and you are entitled to no personal allowance and you get taxed on the entire net profit
- Higher threshold for paying a higher tax-rate. The increase is 40% going from GBP 46,350 to GBP 50,000
Related Post: How to claim refunds for the current Tax Year