Autumn Statement 2023

The statement also introduces administrative changes to simplify and modernize the tax system, making it more accessible for businesses. Here's an overview of some of the key measures announced: 

 

The government has announced a reduction in the main rate of Class 1 employee NICs from 12% to 10% starting from January 6, 2024. Additionally, the main rate of Class 4 self-employed NICs will decrease from 9% to 8% effective April 6, 2024. Notably, from April 6, 2024, self-employed individuals with profits above £12,570 will no longer be required to pay Class 2 NICs, ensuring continued access to contributory benefits, including the State Pension. 

 

The government has extended the NICs relief for employers hiring former members of the UK regular armed forces until April 5, 2025. This relief covers the first 12 months of veterans' first civilian employment, providing employers with relief on secondary Class 1 NICs on veteran wages. 

 

The announcement makes full expensing and the 50% first-year allowance for capital expenditures on plant or machinery permanent. Originally introduced at Spring Budget 2023, this measure allows companies to claim a 100% first-year allowance for main rate expenditure. 

 

A range of measures on tax reliefs has been unveiled, including enhanced support for Research and Development (R&D) intensive small and medium-sized enterprises. The announcement also includes an extension to the 'sunset date' for freeport tax reliefs and administrative changes to the creative industry tax reliefs. 

 

The government is set to make design changes to MTD for ITSA, simplifying and improving the system for taxpayers and their representatives. Draft regulations will be published for technical consultation later in 2023. 

 

 

From April 1, 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers aged 21 and over. Young people and apprentices on the National Minimum Wage will also see an increase to £6.40 an hour. 

 

 

Legislation in Finance Bill 2023 will enable organizations to reduce their additional PAYE liability under the off-payroll working rules. The changes will account for Income Tax and Corporation Tax already paid by a worker and their intermediary in cases of non-compliance. 

 

For further information on all the measures announced in the Autumn Statement 2023, including tax legislation and rates, refer to the official Autumn Statement 2023 and documents from the Office for Budget Responsibility. 

 

We encourage you to stay informed and take proactive steps to prepare for these changes. As always, our team is here to assist you in navigating through these updates.