With Brexit the hot topic of the moment, Chancellor Philip Hammond has unveiled this years Spring Statement for 2019. Taking into the account the Brexit deal or no deal, there could be a deal dividend of £26billion pound, to boost the economy, but only if the negotiations are successful – something that cannot be guaranteed.
Growth for 2019 is expected to be much lower than expected. The rate of growth for 2019 is forecasted at 1.2%, 1.4% for 2020 or 1.6% for 2023.
But how will this affect the hairdressing, barbering and spa industry? Here’s a low down!
- Corporation tax rate will be staying the same. This is 19% in 2019 and will be reduced to 17% in 2020.
- The personal allowance will rise to £12,500 from April, compared to that of £11,850. The threshold is set at £50k.
- The contribution rate towards the apprentice levy has been halved to 5%.
- National minimum Wages and National Living Wages are going to rise again. apprentices will rise to £3.90, Under 18 £4.35, 18 to 20 £6.15, 21 to 24 £ 7.70 and 25+ £8.21.
- The dividend allowance is now £2,00 and looks likely to disappear from 2020. This means that a salon owner who takes dividends to top up a low salary will now pay 7.5% of it in tax. 32.5% as a higher rate taxpayer and £38.1% as an additional rate taxpayer.
- Tax digital requirements will start to apply from April 2019.