Alliotts Budget Summary 2020

4 BUDGET l 11 March 2020 PERSONAL TAXATION Income tax The personal allowance will remain at £12,500 and the higher rate threshold will stay at £50,000 for 2020/21, as announced in the 2018 Budget. In Scotland, the higher rate threshold for non-savings, non-dividend income will also be unchanged at £43,430. Off-payroll working (IR35) From April 2020 the responsibility for operating the off-payroll working rules in the private and third sectors will move from individual workers to the organisation, agency or other third party engaging them. The change applies to services carried out from 6 April 2020. Car benefit The car benefit scale charge percentages for 2020/21 will be restructured, taking account of the recently introduced Worldwide Harmonised Light Vehicle Test Programme (WLTP) emissions standards. The scales for 2020/21 are as follows: All zero CO 2 emission vehicles: 0% Petrol and diesel hybrids with CO 2 emissions 1-50g/km Range — electric-only miles < 30 30–39 40–69 70–129 130 + Registered pre-6/4/20 (NEDC) 14% 12% 8% 5% 2% Registered post-5/4/20 (WLTP) 12% 10% 6% 3% 0% All non-diesel cars over 50g/km CO 2 51-54 55 & over Registered pre-6/4/20 (NEDC) 15% 16%*-37% Registered post-5/4/20 (WLTP) 13% 14%*-37% All diesels that do not meet RDE2 standards: add 4% to the above, subject to a maximum 37% scale charge. *Increased for every extra 5g/km by 1% up to the maximum 37%. The rates will increase by 1% in 2021/22 and a further 1% in 2022/23 before being frozen until 2024/25. > SAVER Don’t lose your personal allowance. Your personal allowance of £12,500 in 2020/21 is reduced by 50p for every pound by which your income exceeds £100,000. You could make a pension contribution or a charitable gift to bring your income below £100,000.