Did the Chancellor’s giveaways come at a price? Michael LansdellFeatured Products Promotional Features
Posted by: The Probe 3rd February 2019
In last November’s Budget, this is what the Chancellor appeared to be giving away…
- An extra £650 on to the personal allowance, taking it up to £12,500 for 2019/20.
- The higher rate threshold also got a boost, of £3,650, which takes it to £50,000. As with the increase to personal allowance, this was a sooner-than-expected Christmas gift, as both these measures had initially been targeted for 2020/21.
- The pension lifetime allowance got a £25,000 increase.
- There was also good news for the high street, with a one-third reduction on business rates for smaller retail premises announced. This will come into force in April.
- Starting in January, the annual investment allowance (AIA) will increase from £200,000 to £1,000,000.
However, were the Chancellor’s measures like gifts that are wrapped to look lovely, but once unwrapped you are less sure if you want to keep them? Possibly.
For example, both the increase to personal allowance andthe higher rate threshold will be frozen in 2020/21. The changes to AIA allowance and reduced business rates for smaller retailers only (currently) have a two-year shelf life too.
If you are at an income level of £100,000, you probably will have already heard about the taper threshold. This means that with a frozen higher-rate threshold, combined with an increase in personal allowance, if you are between the taper threshold of £100,000 and the additional rate of £150,000 you could be facing higher marginal rates of tax. The first £25,000 will be taxed up to 60 per cent; the next £25,000 up to 40 per cent. If you are in Scotland, these figures are up to 61.5 per cent and 41 per cent respectively. Ouch!
That is why it is always a good idea to secure the services of an accountant with insight, knowledge and experience of the dental industry. The pressures acting on dental practice owners are coming in from all sides. We know that the economy in general is facing uncertainty, impacting on business owners in every sector, but as clinicians, you have to think about your patients too. Poor statistics for children’s oral health, the affect of an ageing popular, problems with patient access… these are just some of the challenges of modern dentistry.
The team at Lansdell & Rose will tick all the right boxes and more! Building a strong relationship with a good accountant, who can look at both the bigger picture andthe detail, will help your practice run as efficiently and as profitably as it possibly can, leaving you free to focus on providing excellent care and looking after your team.
For more information please visit www.lansdellrose.co.uk or call Lansdell & Rose on 020 7376 9333.
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