This week , the chancellor Jeremy Hunt delivered the government’s tax and spending plans for the year ahead.
Below I have summarised the key points for small businesses and individuals.
- National Insurance reform for the self employed- Abolished Class 2 National Insurance, saving the average self-employed person £192 a year. Class 4 National Insurance cut to 8% from Apr 24. Employee National Insurance to be cut by 2% to 10%, with this to take effect from the 6 January.
- Business Rates- Small business multiple to be frozen for another year. The 75% business rates relief for eligible retail, hospitality and leisure businesses has been extended for 24-25.
- National Minimum and Living wage increase- The National Living Wage will rise from £10.42/hour to £11.44/hour across the UK for 21 years and over. Young people and apprentices on the National Minimum Wage will also see a rise to £6.40 an hour.
- Alcohol and Tobacco Duty- All alcohol duty frozen until 1st August 2024. Tobacco duty rates will increase by RPI inflation plus 2% with duties on hand rolling tobacco products increasing by RPI inflation plus 12%.
- Universal Credit/Benefits – Universal Credit and other benefits will increase by 6.7%.
Please note that full details of the Autumn Statement on 22nd November 2023 are available on the HMRC website via the following link.
https://www.gov.uk/government/publications/autumn-statement-2023-overview-of-tax-legislation-and-rates-ootlar/autumn-statement-2023-overview-of-tax-legislation-and-rates-ootlar
Please refer to this before making any informed decisions or contact Cloud Accounts Services Limited we will be happy to discuss your circumstances.