2018 Autumn Budget Key Points for Car Dealers and Garages
30th October 2018
The National Living Wage will rise to £8.21 per hour.
Apprenticeship fees will be halved to 5% for smaller businesses.
Personal tax-free allowance to increase again for your employees from April 2019.
Fuel Duty is frozen for the ninth consecutive year.
Road repairs will be largely funded from Vehicle Excise Duty (VED).
The rise in the National Living Wage by 4.9% to £8.21 per hour means a full-time worker can expect a £690 annual increase in pay.
Small businesses who take on an apprentice will now only be required to contribute 5% to their training, which is half of the current amount. The scheme is part of a £695 million initiative to support the hiring of apprentices in small businesses. While this is due to take place in 2019, no exact date has been provided.
Personal Allowance Increases
From April 2019, the tax-free Personal Allowance will rise slightly from £11,850 to £12,500, allowing your employees to keep more of what they earn. The higher rate threshold will also increase from £46,350 to £50,000. The two rates will rise in line with inflation following this increase.
Fuel Duty being frozen for the ninth year in a row means that the average driver has saved over £1,000 since 2010, while the average van driver has saved £2,500.
Vehicle Excise Duty (VED)
Vehicle Excise Duty will be largely funding repairs to England’s roads, with a strong focus on the increasing amount of potholes appearing up and down the country. The extra £420m will be made available immediately to local highways authorities.
VED rates for cars, vans and motorcycles will increase in line with RPI from April 2019.