In his Autumn Statement on Wednesday 22 November, Chancellor Jeremy Hunt announced several tax-related proposals which are summarised below.
National insurance Contributions – all rate bands to remain at current levels until 2027/28
National Insurance Contributions (Employees) – Class 1 NIC main rate reduced to 10% from 12%, from 6 January 2024
National Insurance Contributions (Self employed) – compulsory Class 2 NIC (currently £3.45 per week) abolished from 6 April 2024. Class 4 NIC main rate reduced to 8% from 9%, from 6 April 2024
National Living Wage - rate increased to £11.44 per hour from 1 April 2024; age threshold lowered from 23 to 21
Income Tax (Benefits in kind) – company van and car/van fuel benefit charges remain unchanged for 2024/25
Capital Allowances – 100% tax relief (‘full expensing’) for capital expenditure incurred by companies made permanent (originally due to expire 31 March 2026)
Cash Basis of accounting – expanding the scope of the cash basis for unincorporated trading businesses – removal of the £150,000 and £300,000 thresholds from April 2024
Research & Development tax reliefs – merger of the Small or Medium Enterprises (SME) and R&D Expenditure Credit (RDEC) schemes from April 2024: rate offered under the merged scheme to be at the RDEC 20% rate
Annual Tax on Enveloped Dwellings – annual charges to increase by 6.7% from April 2024
Income Tax, Inheritance Tax, Stamp Duty Land Tax - no changes announced, all remain fixed at levels previously announced
GMcG's detailed Autumn Statement Analysis publication looks more closely at the Chancellor's announcements and can be viewed on our website - HERE
Should you require further information on how these changes might impact upon you or your business, please contact our Tax Team who will be happy to advise - HERE
