Autumn Statement 2023

The Chancellor announced his Autumn Statement to Parliament on Wednesday 22nd November.

National Insurance

  1. Class 4 NIC will be reduced to 8%, from 6th April 2024.
  2. From the same date, self-employed with profits above £12,570 will no longer be required to pay Class 2 NIC.
  3. They will, however, continue to receive access to contributory benefits, such as the state pension.
  4. Where self-employed profits are between £6,725 and £12,570, entitlement to contributary benefits will be maintained. Those with profits under £6,725 will be able to pay voluntarily Class 2 will continue to get access to contributory benefits.  
  5. Class 1 National Insurance Contributions, paid by employees, will fall by 2% from 12% to 10% from 6th January 2024.The employer rate of Class 1 NIC will remain the same.

State pension & Benefits

  1. From April 2024, £221.20 a week for the full, new flat-rate state pension (for those who reached state pension age after April 2016)
  2. £169.50 a week for the full, old basic state pension (for those who reached state pension age before April 2016)
  3. Universal credit and other working-age benefits in England and Wales to increase by 6.7% from April, in line with September’s inflation rate

 National Minimum & Living Wage

  1. From 1st April 2024, the Government will increase the National Living Wage (NLW) for UK workers aged 21 and over from £10.42 to £11.44 an hour.
  2. Rates for 18 to 20-year-olds is £8.60.
  3. Rates for 16 to 17-year-olds and apprentice is £6.40. The same rate applies to people aged under 19, or people over 19 in the first year of their apprenticeship.

Businesses

  1. The small business rates multiplier in England at 49.9p for 2024/25, remains same for the fourth consecutive year.
  2. “Full expensing” tax break – allows businesses to deduct the full cost of investing in machinery and equipment from their tax bill has been made permanent.

The above are the important updates for you and your business. For further info, please visit HMRC website Autumn Statement 2023 (publishing.service.gov.uk)