With 2017 drawing to a close, we are looking ahead to 2018 and what the forthcoming year could bring for businesses in different industries, throughout the UK. Take a look through our roundup of incoming changes that businesses may need to prepare for in 2018.
National living wage
The recent autumn budget announcement revealed that the national living wage will rise from £7.50 to £7.83 per hour from April 2018. Businesses currently aligning their employee wages with the living wage will need to prepare for the impact that these changes will have on their cash flow. Details of all living and minimum wage changes can be found below:
25 and over – Rising from £7.50 to £7.83
21 to 24 – Rising from £7.05 to £7.38
18 to 20 – Rising from £5.60 to £5.90
16 to 17 – Rising from £3.50 to £3.70
Personal income tax
Personal tax allowance will also rise from April 2018, increasing from the current threshold of £11,500 to £11,850. The threshold for those that pay higher rates of tax will also increase to £46,350.
Announced in the spring budget from next April the dividend allowance will reduce significantly, from £5,000 to £2,000.
Company cars & fuel
The recent autumn budget announced a vehicle excise duty for new diesel cars that don’t meet European emissions standards, increasing by one band in 2018. The diesel supplement on tax for company cars is also rising by 1%.
As the first year of the scheme for workplace pensions is now complete, businesses must now prepare for the second phase of automatic enrolment, as the percentage employers must contribute rises from 1% to 2% from April. Employee contributions will also rise, from 1% to 3%.
A significant change for UK businesses in 2018 will of course be the new General Data Protection Regulations (GDPR) which come into force in May. Take a look at our article on GDPR to discover the impact it could have on your business.
Our expert team of accountants and business advisors are always on hand to provide advice and guidance on any forthcoming changes that will affect their business. Contact our team today.