Budget announcements relevant to the VCSE sector

31 Oct 2018 Governance

Budget announcements relevant to the VCSE sector

  • Income tax: From April 2019 the personal allowance – the amount you can earn without paying any income tax – will be raised from £11,850 to £12,500
  • National minimum and living wage: The national living wage will increase to £8.21 from April 2019. All national minimum wages rates will increase in April 2019 in line with the recommendations from the Low Pay Commission
  • Universal credit: There will be an increase of Work Allowances for households with children, and people with disabilities by £1,000 from April 2019
  • Employment allowance: From April 2020, the allowance will be restricted to companies with an employer national insurance bill below £100,000 in the previous tax year
  • Business rates: There will be £900 million to support business rate relief for small businesses. Small businesses with a rateable value below £51,000 will see their bill cut by a third from April 2019
  • Transformation fund: The chancellor has pledged £675 million to help transform struggling high streets with infrastructure and transport access
  • Charity trading thresholds: The amount that charities can trade before incurring a tax liability has increased from £5,000 to £8,000 where income is under £20,000, and from £50,000 to £80,000 where income exceeds £200,000
  • Gift Aid Small Donations Scheme: The individual donation limit has been increased to £30. This applies to small collections where it is impractical to obtain a Gift Aid declaration
  • Food waste: £15 million will be given to charities and other organisations to distribute surplus food

For more information see:

NCVO’s budget blog

Donut Weekly

Money Saving Expert