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  • Writer's pictureTLC Chartered Accountants

AUTUMN BUDGET


Chancellor Jeremy Hunt announced the Autumn Statement on Wednesday 22nd November 2023. We've highlighted some key points below:


National insurance:

- Employees: reductions have been made to the main rate of Class 1 NICs from 12% to 10% from 6th January 2024.

- Self-employed: reductions to the main rate of Class 4 NICs from 9% to 8% from 6th April 2024.

- Also from 6‌‌‌th April 2024 self-employed people with profits above £12,570 will no longer be required to pay Class 2 NICs

- Class 2 and Class 3 NICs rates at their 2023 to 2024 levels for 2024 to 2025, and the Class 1 Lower Earnings Limit and Class 2 Small Profits Threshold will also remain frozen for the 2024 to 2025 tax year.

National living wage

- From 1st April 2024 the national living wage will be raised from £10.42 per hour to £11.44 and will apply to those aged 21 or over.

- Also confirmed that the NLW rate for 18- to 20-year-olds will also rise from £8.60 per hour to £9.71 per hour, and that the apprentice rate will also rise from £5.28 an hour to £6.40 an hour.


Capital allowance — the permanent full expensing:

- Full expensing allows companies to claim 100% of qualifying main rate plant and machinery investment for expenditure. This means that companies paying the main rate of corporation tax obtain tax relief of 25p for every £1 of qualifying expenditure.

- Alongside full expensing companies can claim 50% first-year allowance for expenditure on new special rate assets. This was also due to expire on 31 March 2026 but is now due to become permanent.


Business rates:

- A extension to 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.


State Pension:

- The basic State Pension, new State Pension and Pension Credit standard minimum guarantee will be uprated in April 2024 in line with average earnings growth of 8.5%.


For more information on the autumn budget, please visit the link below:


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