Many breathed a sigh of relief after the Budget announcements, given that the widely expected tax rises to pay for the NHS did not materialise. Financial planning was, in fact, remarkably unaffected for a change. However, the spectre of further tax rises - should Brexit go awry - remains ever present. As such there are several things to bear in mind:
- Experts warn there is no certainty how long current pensions tax reliefs will last and advise clients to make the most of their full tax allowances while they can.
- Most people will pay less income tax from next April after the personal allowance and higher rate tax thresholds were unexpectedly increased in the Budget — but higher earners will see part of that gain cancelled out by linked increases to national insurance.
- From April 2020, reforms to the “off-payroll” working rules will mean private sector companies who cannot prove their workers are self-employed will become liable for paying employer NICs and deducting higher taxes from their workers’ pay.