The Autumn Statement provided personal tax cuts, a State Pension triple-lock guarantee for April 2024, greater ISA freedoms and consultations around a new lifetime pension. Yesterday afternoon, Chancellor Jermey Hunt laid out his plan to help ease the cost-of-living squeeze and ‘turbo-charge’ UK economic growth.
If you didn’t manage to watch or hear the Statement being delivered, we have summarised the main takeaways, in our attached Autumn Statement Highlights. You can find the link to this below.
Here we have summarised some of the key points of the Statement.
Personal Taxes/National Insurance (NICs)
From 6 April 2024, self-employed people with profits above £12,570 will no longer be required to pay Class 2 NICs but will continue to receive access to contributory benefits including the State Pension.
Those with profits between £6,725 and £12,570 will continue to get access to contributory benefits including the State Pension through a National Insurance credit without paying NICs as they do currently.
- From 6 January 2024 the main rate of Class 1 employee NICs will be cut from 12% to 10%;
- From 6 April 2024 the main rate of Class 4 self-employed NICs will be cut from 9% to 8%;
- Class 2 self employed NICs will be abolished from 6 April 2024;
The government will set out next steps on Class 2 reform next year.
At Spring Budget 2023, the government introduced two new temporary first-year allowances. For qualifying expenditure on the provision of plant or machinery incurred on or after 1 April 2023 but before 1 April 2026, companies can claim a 100% first-year allowance for main rate expenditure – known as full expensing – and a 50% first-year allowance for special rate expenditure.
Within the statement, the government announced that full expensing and the 50% first-year allowance will become permanent by removing the expiry date of March 2026.
Measures have also been announced to further reduce non-compliance in the R&D tax reliefs. The government will restrict the use of nominations and assignments for R&D tax credit payments. This will stop payments being made to third party bank accounts with payments now having to go to those who are claiming.
National Minimum and Living Wage Uprating 2024 to 2025
From 1 April 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers across the UK aged 21 and over. Young people and apprentices on the National Minimum Wage will also see a boost to their wages, which will increase to £6.40 an hour.
The Autumn Statement 2023 Speech
The Autumn Statement 2023 Documents
If you would like to discuss how these changes may affect you and/or your business, please contact your usual NRB advisor or our tax team.
Please note, the content of this Autumn Statement reaction is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.
While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.