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.
Please refer to this before making any informed decisions or contact Cloud Accounts Services Limited we will be happy to discuss your circumstances.