As always, the new tax year brought a number of changes. And as a limited company director, it’s likely that some of these changes will impact you directly. To help get you up to speed, we’ve put together a rundown with some of the new changes.

Personal allowance

The 2018/19 tax year will see the personal allowance rise from £11,500 to £11,850. The higher rate threshold is also increasing from £45,000 to £46,350 in England, Wales and Northern Ireland.

Dividend allowance

If you pay yourself in dividends through your limited company, the allowance is dropping from £5,000 to £2,000. This means you’ll get to earn £2,000 as dividends before paying tax. Beyond this, you'll pay tax on dividends at 7.5% if you're a basic rate taxpayer, 32.5% for a higher rate, and 38.1% for an additional rate.

You can discover more about your dividends in our guide here

Student loan threshold

The earning thresholds for student loan repayments have also increased as follows:

Plan 1 has increased from £17,775 to 18,330.

Plan 2 has increased from £21,000 to £25,000.

Pensions contributions

The lifetime allowance has increased from £1,000,000 to £1,030,000 which means you will pay 55% tax on lump sum withdrawals or 25% on income withdrawals.

Childcare voucher scheme

Employer-Supported Childcare is due to only remain open to new applicants and is set to close entirely in October 2018. In its place, the government are looking to fully implement the Tax-Free Childcare Scheme. If you're looking for more information about how these changes could affect you, we've put together a guide for your reference.

Want to know more?

There’s a lot to take in when the new tax year rolls around and getting your finances in order isn’t always easy. As your accounting partner, we’ve created a handy guide detailing the changes and how to ensure you’re working as tax efficiently as possible.

For an overview of the changes and how they could affect you, just fill out your details below to download your free copy.