Election 2019 | manifesto comparison & how it affects salon & barbershop businesses
With the election only days away, Salonfrog has compared the manifestos of the main 4 parties to see how their policies would affect the businesses of salons and barbershops. For this, we’ve ignored Brexit and Indi ref 2 and instead concentrated on the tax implications of each:
In summary:
| Currently | Conservative | Labour | SNP | Lib Dem | |
|---|---|---|---|---|---|
| Corporation Tax | 19% but by law will reduce to 17% Apr 2020 | Keep at 19% | Increase to 21% (or 26% if income > £300k | - | Increase to 20% |
| Income Tax | England, Scotland, Wales set their own but basic around 20% | No change | New 45% tax for income > £80k | No change | All rate increase by 1% |
| National Insurance | Eee:12% over £8,632 threshold Ers:13.8% over £8,632 threshold | Raise threshold to £9,500. Increase employment allowance £3k->£4k | - | Devolve to Scotland. Decrease Employers NI. Increase Employment allowance. | Review the whole NI system. |
| Dividends | First £2k - 0% Basic rate 7.5% | No change | Increase to income tax rates! Around 20%. Withdraw £2k 0%. | - | - |
| Contractors | Review tax treatment | Review tax treatment | Review tax treatment | Review tax treatment | Review tax treatment |
| VAT | 20% Threshold £85k | No change | No change | No change | No change |
| Business Rates | Review | Review | Devolve to Scotland and review | Replace with commercial landlord tax | |
| NLW | Age 25+ £8.21ph | Increase to £10.50 over 5 years. Reduce age to 23 (then to 21 by 2024) | Increase to £10 from age 16 in 2020 | Increase to £10 minimum | To review |