Planning your money in times of change

Moore Stephens

1st February 2019

Money Matters

Moore Stephens

By Pete Simons


Moore Stephens

THIS year is set to be a year of changes for finances, with everything from income tax, state pension payments and inheritance tax set to change. In this article, we look at some of the upcoming changes and what they mean for you.

Income tax

From 6 April, the personal allowance is increasing from £11,850 to £12,500 - this is the amount of money you can earn before you pay tax. In addition to this, the threshold for the 40 per cent tax rate is also increasing from £46,350 to £50,000.

These changes will mean that all basic rate tax payers will receive an extra £130 a year and higher earners will receive between £600 and £860 depending on their income level. Those with incomes between £50,000 and £100,000 benefit by the full £860, before the gradual loss of personal allowance on income over £100,000 reduces the benefit to £600.

Workplace pension contributions

From 6 April, the total minimum amount being paid into the workplace pension (on a qualifying earnings scheme) will increase from five per cent to eight per cent. Employees (over the age of 22 and earning over £10,000) will see their contribution rise from three per cent to five per cent. The contribution from employers will rise from two per cent to three per cent.

Inheritance tax

At present, when you pass away, you can leave up to £325,000 to your loved ones tax free. This does not include the main residence allowance, which is currently £125,000 per person. This means that anyone who owns a home can pass on up to £450,000 of wealth without needing to pay inheritance tax.

From 6 April 2019, the main residence allowance will increase to £150,000, which means and individual will have a total allowance of £475,0000 or £950,000 for married couples and civil partners.

PPI claims

2019 marks the end of the PPI claims period. If you believe that you were mis-sold Payment Protection Insurance (PPI), you must complain to the Financial Ombudsman or your provider no later than the 29 August, or you will lose your right to claim your money back.

For advice on tax planning or payroll matters, contact Moore Stephens Chartered Accountants on 01536 461900 or visit

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