The Chief Minister announced the Budget yesterday in the Gibraltar Parliament on Monday 10th June 2019. From a payroll perspective, there was not much change. The full Budget speech is available here.
There is a small change to tax for anyone earning up to £11,450. These people will no longer pay any tax. Previously people earning up to £11,200 paid no tax. There was no change to social insurance.
There were also slight increases to the allowances available under the different headings of the ABS (Allowance Based system). Anyone on ABS is likely to receive a new tax code in the next few weeks in the post, with a slight reduction in tax. It is also advisable that these persons check the new increased allowances available under ABS to see if they can claim further tax deductions for dependent relatives, single mothers, medical insurance, children studying abroad, etc.
We have already incorporated some of these changes in EasyPay Version 18.43. We expect there may be a few more updates in the next few weeks to address any additional tax, SI or Government form changes for the next tax year.
We are in contact with the tax office concerning other possible changes for the upcoming tax year commencing 1st July 2019. There is also an initiative by the tax office to automate the end of year submissions.
The Budget announced yesterday also announced an increase in the minimum wage of 25p each year for the next 3 years. There were a number of incentives for home buyers, changes in import duties, an increase in gift aid and no increase in corporation tax.