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:
|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|
|No change||No change||No change||No change|
|Business Rates||Review||Review||Devolve to Scotland and review||Replace with commercial landlord tax|
|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|