The Budget was favourable for most independent practitioners, writes Susan Hutter.
Personal allowances and higher-rate tax bracket
The Chancellor, after saying he had frozen personal allowances and the higher-rate tax threshold, decided to raise them from 6 April 2019. Personal allowances: from £11,850 to £12,500; Higher-rate tax threshold: from £46,350 to £50,000.
Most doctors have above £100,000 total income: the figure where personal allowances are depleted. But those with a lower-earning spouse can transfer income-earning assets to them to decrease the marginal rate of tax for the ‘family’.
Those employing spouses in the practice, as long as the work carried out is commensurate with the remuneration, can look at increasing the salary to take advantage of the changes.LOGIN OR REGISTER TO READ MORE……………