Autumn Budget Update November 2023
Here is a summary of the key changes for businesses announced in the Autumn Statement
Personal Tax
- National Insurance – the Government has announced a cut in National Insurance from 6 January 2024 – from 12% to 10%.
- Class 2 National Insurance Contributions – paid by self-employed people earning over £12,570 – these are being abolished from April (worth about £192 a year for the average self-employed person).
- Class 4 National Insurance Contributions – paid by self-employed people on profits between £12,570 and £50,270 – are being cut from 9% to 8% from April.
- National Living Wage (otherwise known as the legal minimum wage) – to increase from £10.42 to £11.44 per hour from April 2024.
- National Living Wage rate will apply to 21 and 22 year olds for the first time (having previously only applied to those aged 23 and over).
- 18 to 20-year-olds will receive a £1.11 hourly rise to £8.60.
Pensions
- State pension payments to increase by 8.5% from April 2024, in line with average earnings.
Business Tax
- Corporation Tax– The full expensing tax break that businesses can claim back for investments made in plant and equipment is to become permanent.
- Business Rates – 75% business rates holiday for the retail, leisure and hospitality industries has been extended for an extra year.
Indirect Taxes and Duties
- Alcohol Duty – To support hospitality businesses, alcohol duty has been frozen until August 2024.