Store Excel Budget Bullets
The key October 2018 budget announcements affecting independent retailers.
National growth forecasts
- 2019 growth is expected to be 1.6% rather than 1.3%
- 2020 growth expected to be 1.4% for 2020 against 1.3% previously forecast
- Duty on cider & spirits is frozen.
- Tax on wine will increase with inflation.
- Tobacco duty escalator will continue at 2%
- Fuel duty is frozen for the ninth year in a row.
Personal Tax & Pay
- Personal allowance will rise to £12,500 from current £11,850.
- Higher rate threshold will start at £50,000 – currently £46,351.
- National living wage will increase from £7.83 per hour to £8.21 per hour in April 2019. An increase of 4.9%
- Business rates for smaller retailers, pubs, restaurants and cafes will be cut by a third over the next two years.
- Apprenticeship levy for small firms is to be halved to 5% and £695 million will be made available to help small businesses hire apprentices.
- The current threshold for VAT registration which stands at £85,000 will remain unchanged for a further two years.
- The Annual Investment Allowance that businesses can offset against tax will rise temporarily from £200,000 to £1 million from January 2019 in a bid to boost private-sector investment. The higher limit will be in force until the start of 2021.
High Street Support
- £675 million of co-funding will be made available to create a “Future High Street Fund” to support local councils draw up plans for the transformation of their high streets.
- A new Digital Services Tax of 2% on revenue will be levied on major digital platforms that make significant profit in the UK. This will be introduced in 2020.
- An additional £1bn will spent over five years to help smooth the transition to the Universal Credit system.
- Stamp duty for first time buyers of shared ownership properties worth up to £500,00 is to be cut.
- A new plastic packaging tax will be established for April 2022.
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