In his Budget speech of 18 February 2020, the Minister for the Treasury, the Hon. A L Cannan, MHK, announced various taxation and National Insurance measures.
Following the Budget, the Income Tax Division of Treasury published the following Practice Notes:
Budget 2020 – Tax and National Insurance Headlines
- The income tax personal allowance is increased to £14,250 for a resident individual and £28,500 for a jointly assessed couple.
- The income tax lower rate for individuals remains at 10% and the higher rate at 20%.
- The threshold at which the higher rate becomes payable remains at £6,500 for an individual and £13,000 for a jointly assessed couple.
- The Upper Earnings Limit for Primary Class 1 National Insurance contributions is increased to £823 per week.
- The thresholds at which both employees and employers start to pay Class 1 NIC are increased to £138 per week.
- The Class 2 Small Earnings Exception Limit and Class 4 Lower Profits Limit are increased to £7,176 annually. The Class 4 Upper Profits Limit is increased to £823 per week.
- Any changes to the Class 1 Lower Earnings Limit, Class 2 contribution payable by a volunteer development worker and/or Class 3 voluntary contributions will not be announced until after the UK Budget and will be subject to approval by Tynwald in March. Details of the National Insurance tables and Developer’s Software Guide will be available at that point.
- The National Insurance Holiday Scheme is continued for a further year.