Chancellor Jeremy Hunt has unveiled the government’s tax and spending plans, and forecasts for the economy in his Autumn Statement.
Unveiled was a plan to reduce debt, cut taxes and reward work aimed at building a stronger and more resilient economy.
Boost business and reward people was at its’ core.
An Autumn Statement for Businesses
Self Employed National Insurance Contributions
The weekly Class 2 NICs – the flat rate compulsory charge paid by self-employed people will be abolished from April 2024. Access to contributory benefits will be maintained and those currently paying voluntarily will still be able to do so at the same rate.
The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut from 9% to 8% from April 2024
Full Expensing
Full expensing has been made permanent to increase business investment further. Meaning for every £1 invested, a company can potential claim 25p back through tax from profits.
Rates Relief
75% Business Rates discount for retail, hospitality, and leisure businesses extended for a further year
The Small Business Multiplier used for the calculation of rates has also been frozen for another year
R&D
R&D Expenditure Credits for SMEs will be merged from April 2024, in addition the rate at which loss making companies are taxed withing the newly merged scheme will be reduced from 25% to 19%
An Autumn Statement for People
Employee National Insurance
The main rate of Employee National Insurance will be cut by 2% from 12% to 10%, coming into effect from 6 January 2024.
The combined rate of income tax and NI for employees paying the basic rate of tax will therefore fall from 32% to 30%.
National Living Wage
The national living wage will rise by 9.8% to £11.44 per hour from April 2024 for eligible workers, however for the first time this will include 21- and 22-year-olds.
Pensions
A range of pension reforms are being considered in an attempt to make it easier for pension savers to consolidate their funds.
The OBR (The Office for Budget Responsibility) say that the combined impact of these measures will raise business investment, get more people into work, reduce inflation next year and increase GDP.
Autumn Statement Radio Interview
Mike was invited on to Huntingdon Community Radio to update their listeners on the Autumn Statement, you can listen to the interview in full here…