Delay to 2020/21 tax allowances
24th February 2020
HMRC has advised that the announcement of the 2020/21 tax allowances and personal tax rates will be delayed until after the Government reveals its Budget in March.
These rates are normally confirmed several months before the start of the tax year, however the timing of the General Election in December 2019 delayed this year’s announcement.
We expect that most rates in force for 2019/20 will remain unchanged for 2020/21 but for a few small tweaks – however this won’t be confirmed until the Government unveils its Budget on March 11th.
As a result, we are making all clients aware that we will be unable to advise you fully with regards to your remuneration strategy for the new tax year until the 2020/21 tax allowances are set in stone.
Although we are unable to confirm the rates at this stage, HMRC has recommended that any tax planning is done on the assumption that the current rates will not change. We will be working on this basis unless advised otherwise by HMRC and will make any necessary updates following the Budget announcement.
If you have any questions or need further support from our tax specialists, get in touch with our friendly team who will be happy to help with any queries.
