NEW LAWS COMING INTO EFFECT IN 2019
Changes in the Law made by Parliament are put in place by Acts of Parliament i.e. Laws passed directly by Parliament following a vote. Often those Laws do not come into effect immediately and they will be phased in over a period of years. There are a number of Law changes coming into effect this year and this is a summary of those changes and how they might affect you: –
As we have seen with the recent closures of Heathrow and Gatwick usage of drones in the public is becoming more and more of an issue. In November 2019 new Laws will come into effect. Those Laws will make it illegal to fly a drone weighing more than 250g without first registering it with the Civil Aviation Authority. This will involve having to pass online safety tests. This will ensure more regulated usage of drones designed to prevent incidents like those at Heathrow and Gatwick from occurring.
Changes to National Minimum Wage
In April 2019 the Living Wage for people aged 25 and over will rise from £7.38 per hour to £8.21 per hour.
Energy Bill Capping
Much of this has come into effect already but Dual Fuel customers that pay by direct debit have their energy bills capped at £1,137. There is a potential that this cap will be raised in the budget in April but no changes have been confirmed.
You will be able to keep more of the money that you earn
The Personal Tax Allowance goes up from £11,850 to £12,500 on the 6th April 2019. This is expected to leave people who are typically basic rate tax payers with an extra £130 in their pocket.
The higher rate of tax will also be increased from £46,350 to £50,000 but there will also be changes to the National Insurance contribution.
At present those earning over £46,350 pay only 2% of their earnings above this amount by way of National Insurance contribution whereas from April 2019 onwards they will have to pay the full 12% on everything up to £50,000 meaning on average those earning in that category will be worse off by £520 per year.
Employers’ Pension Contributions
All of those currently on the NEST system which is the Government introduced system for employers to contribute towards their employees’ pensions have to make a minimum contribution level of 5% of your annual salary. The employers pay 2% and you pay the rest. However, this is going to increase to 8% in April 2019 which the employers having to pay 3%.
Permanent Stay for EU Nationals
All European workers living in the UK can apply for ‘Settled Status’ in 2019. This would allow those workers to remain indefinitely in the UK after the Brexit transition period. In order to gain Settled Status the individual has to prove that they have lived in the UK for five years by the time they make the Application.
Digital Tax Returns
In April 2019 all Tax Returns will have to be submitted digitally. This will apply to everyone! HMRC are pioneering the complete conversion of all Tax Returns in digital only format.