On 22 November 2023, Jeremy Hunt delivered the ‘Autumn Statement for Growth’. Against an improving economic backdrop, the Chancellor is keen to stimulate economic growth and highlighted 110 measures for businesses. In addition, there were significant statements relating to National Insurance changes and also the reform of work-related state benefits.
Some key headline announcements are below:
Personal Tax
Main rate of employee national insurance to be cut from 12% to 10%. This will take effect from 6th January 2024.
Class 2 compulsory national insurance contributions for the self-employed will be abolished from 6th April 2024. Access to pension entitlement, will be maintained where profits are higher than £6,725 per annum. Voluntary payments to gain pension entitlement where profits are below this level will still be possible.
Self-employed Class 4 NIC will be cut from 9% to 8% from April 2024. This rate is payable on profits over £12,750 up to £50,270
Business Tax
The current two R&D corporation tax relief schemes for small and large businesses are to be replaced by a single scheme.
Business rates 75% discount for hospitality, retail and leisure businesses will be extended by a year to March 2025.
Capital allowances at 100% on new equipment purchases which was to end in March 2026 will be made permanent.
Other
Commitment to pension triple lock to be honoured, and the full state pension will increase to £221 per week from April 2024
National living wage to be increased to £11.44 per hour
Please contact us before taking any action as a result of the contents of this summary.
