News
Autumn Statement 22.11.2023 Summary
27 - 11 - 2023
On 22 November
2023 the Chancellor of the Exchequer, Jeremy Hunt, presented his Autumn
Statement to the Houses of Parliament. The Statement is an opportunity for the
Government to announce any proposed tax changes and give an updated economic
forecast.
A summary of
the main tax announcements is noted below. Please do not hesitate to contact Foremans LLP if you have any questions regarding items not addressed:
1. Personal
Taxation
Ø Income
Tax Rates and Thresholds
·
No proposed changes to income
tax rates and thresholds.
|
|
2023/2024 |
2024/2025 |
Personal
Allowance |
|
£12,570 |
£12,570 |
Tax
Thresholds |
|
Tax
Percentages |
|
Basi
tax rate |
£12,570
to £50,270 |
20% |
20% |
Higher
tax rate |
£50,271
to £125,140 |
40% |
40% |
Additional
tax rate |
Above
£125,140 |
45% |
45% |
Ø National
Minimum and Living Wage
01 April 2024
National Minimum and Living Wage will increase to £11.44 an hour for workers
aged 21 plus.
Ø National
Insurance Contribution Rates
Ø Employees:
–
Class 1 Employee NIC will reduce from 12% to 10% on 06 January 2024.
- No change to the thresholds.
Ø Self
Employed:
– Class 4 NIC will reduce from 9% to 8% from 06
April 2024.
- Class 2 NIC will be abolished from 06 April
2024.
Ø Individuals
taxed only through Pay As You Earn (PAYE) will not be required to file a Self
Assessment Tax Return from 2024/2025 Tax Year.
Ø Making
Tax Digital (MTD) will be implemented for Self Employed and Landlords with
annual income over:
o
£50,000 from April 2026.
o
£30,000 from April 2027.
Ø The
income tax basis for the Self Employed and Partnerships will be simplified from
06 April 2024. Detail to be released.
2. Business
Tax
Ø No
changes to Corporation Tax
Ø The
capital allowances full expensing regime has been made permanent. Main Rate
assets can claim a 100% first year allowance and special rate assets a 50%
first year allowance.
Ø Investment
zones in England are extended from a 5 year life to a 10 year life. 3 new zones
announced in England - Greater Manchester, West Midlands and East Midlands. One
new investment zone in Wales – Wrexham.
Ø Business
Rates – 75% business rates relief for Retail, hospitality and Leisure industry
extended for one more year.
Ø IR35
Offset Facility
As
of 06 April 2024 where a failure to deduct PAYE and NI is assessed HMRC will be
able to set off the deemed employer PAYE liability against taxes paid by a
worker and their intermediary.
Ø Construction
Industry Scheme (CIS)
-
VAT tests will be added to the
Gross Payment Status Process.
-
Removal of majority of landlord
to tenant payments from the scope of CIS.
-
The first review of a gross
payment status holder’s compliance history will be brought forward to 6 months
after application for gross status. The review will revert to 12 months after.
3. Other
Taxes
Ø Alcohol
– Alcohol duties frozen until 01 August 2024.
Ø Tobacco
– Increase in duty on all tobacco products by
RPI + 2%.
– Increase in duty on hand rolling tobacco by
RPI + 12%.
Ø HGV
Levy and Vehicle Excise Duty – will be frozen at 2023/2024 rates for 2024/2025.
Ø Vehicle
Excise Duty for cars, vans and motorcycles – increase by RPI from 01 April
2024.
4. Other
Measures
Ø Benefits
-
Universal credit and other working age benefits in England and Wales will be
increased by 6.7% from 06 April 2024.
-
people claiming benefits will need to do mandatory work experience if they do
not find employment within 18 months.
-
Work Capability Assessment to be reformed to reflect availability of home
working.
Ø State
Pension – will be increased by 8.5% from 06 April 2024.
Ø A
retail share offer for the sale of some of the UK Government’s stake in Natwest
Bank.
5. Tax
Compliance
Ø HMRC’s
debt management resource is to be increased to support individuals and
businesses who are unable to pay their tax.
The
above is meant as an indication of the main points included in the Autumn
Statement 2023. The information should not be relied upon as taxation advice.
Please
contact us at Foremans LLP on 01244 625 500 for a free no obligation discussion
on any of the changes above.

