Autumn Statement: What’s In It For Businesses?

We all saw the Autumn Statement on 22 November, but the question is, what’s in it for businesses?

This years three words were unsurprisingly Reduce, Cut and Reward, so with inflation reduced, taxes have been cut and there are rewards to hard work.

National Insurance

The biggest headlines relate to National Insurance with reductions for the self employed with Class 2 and Class 4 contributions. However, there is also a reduction to the Class 1 employee contribution.

From April 2024 Class 2 contributions will be abolished saving £3.45 per week, although individuals will still receive credit for their state benefits.  You may wish to make voluntary contributions at the same rates. The Class 4 main rate will reduce by 1% from 9% to 8%, and these are based upon the taxable profits of a self-employed individual.

The biggest reduction arises from the employee Class 1 Contributions, but with a proposal that this will be effective from 6 January 2024. The reduction of the main rate by 2% will see a reduction from 12% down to 10%.

National Living Wage

The increase in the national living wage was announced and this will see a large increase to an hourly amount of £11.44, with further increase in the national minimum wage for those between 16 and 20 years old.

Limited Companies

For Limited Companies there was also good news with the extension of the full expensing, which was introduced from 1 April 2023, it is now a permanent relief for qualifying plant and machinery capital expenditure and will provide immediate tax savings on such expenditure.

For those Limited Companies that engage in qualifying Research and Development, there will be further changes from April 2024 with the merger of the two schemes currently available to both large and small business. Further details will follow; however it may be possible to reduce the corporation tax rate from 25% down to 19%.

Business Rate Reliefs

There is also good news for those in retail, leisure and hospitality with the announcement that business rate reliefs will continue for the fourth consecutive year.

Pensions

Workplace pensions will also witness reforms, which may allow for employees to dictate where they wish to have their contributions paid, which will aid the modern workforce with individuals having several employments over their working life.

Click here to read our Autumn Statement Summary

Get In Touch

Over the next few days further detail will follow, but please make contact with us to discuss any of the issues.

Disclaimer - All information in this post was correct at time of writing.