The Chancellor of the Exchequer, Jeremy Hunt, presented his 2023 Autumn Statement to Parliament on 22nd November 2023.

What key changes were announced and how will they impact you?

Income tax

No changes

National Insurance

  • The main rate of employee NICs (Class 1) will be cut from 12% to 10% from 6th January 2024.
  • The self-employed will also see Class 4 NIC cut from 9% to 8% from 6th April 2024.
  • No change to Employer’s NIC, which remains at 13.8%

Dividend tax

No changes

Corporation tax

No change to the amount of tax a limited company pays.

Capital Allowances

At the Spring Budget 2023, the government replaced the super deduction regime with ‘full expensing’ for 3 years from 1st April 2023, allowing businesses to write off the full cost of qualifying plant and machinery investment against their taxable profits.

The government is now making this change permanent with a 100% first year allowance for main rate assets and 50% first year allowance for special rate (including long life) assets.

National Living Wage (NLW)

From 1st April 2024, the NLW will increase to £11.44 an hour for eligible workers aged 21 and over.

Other announcements

  • Business rates – including extending the current 75% business rates relief for eligible retail, hospitality and leisure properties for one year in 2024/25 and freezing the small business rates multiplier for business in 2024/25.
  • Freeports – extending the duration of tax reliefs available from five to ten years.
  • Investment zones – extending the programme from five to ten years.
  • Alcohol duties – freezes alcohol duties until 1 August 2024 and delays the annual uprating decision to the 2024 Spring Budget.
  • A package of welfare reforms, including a strengthening of work search requirements for some, designed to increase employment.
  • Local housing allowance – rates will be increased to equal the 30th percentile of an area’s market rents in 2024/25. Rates will then be maintained in cash terms in subsequent years.
  • Planning – including plans for accelerated planning decision dates for major developments in England to be guaranteed in exchange for a fee.

Reference

For the full Autumn Statement 2023 policy documents visit  Budget documents.

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