From April 2018 the level of minimum contributions which must be paid into a qualifying pension scheme under auto-enrolment went up to 5% of qualifying earnings. Employers must make a minimum contribution of at least 2% with employees contributing the balance. From April 2019 the total will rise to 8% of which employers will have to contribute 3%. The annual pension allowance is unchanged at £40,000 and unused allowances may be carried forward for up to 3 years.
The Scottish Government now has control of income tax rates and bands so it should have come as no surprise when the Budget introduced rates and bands which were notably different from the UK equivalents. The new rates are displayed on our personal tax page but, in essence, we are faced with a lower starting rate (19%) for the lowest paid counterbalanced by a slightly higher basic rate and topped with 1% extra on higher rate and additional rate taxpayers.
Under MTD taxpayers will need to maintain digital records and provide HMRC with digital reports. The new rules will apply for VAT purposes only from April 2019. From that date VAT registered businesses whose turnover is over the VAT registration threshold (£85,000) will need to maintain digital records, calculate the return using “functional compatible software” and submit it to HMRC via an application programme interface| The clock is ticking and VAT registered businesses need to start preparing.