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Autumn Budget 2023: Guide for Small Business Owners

By 22/11/2023No Comments
Autumn Budget 2023

We have detailed some key changes further to chancellor Jeremy Hunt’s announcements in the 2023 Autumn Budget earlier today as follows;

Personal Tax

  • The employee’s national insurance rate is cut from 12% to 10% from 6 January 2024, impacting around 27 million workers.
  • The tax-free personal allowance, currently set at £12,570, is frozen until 2028.
  • The national living wage is rising to £11.44 per hour from April 2024, and eligibility will also be extended by reducing the age threshold to 21-year-olds for the first time.  A 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker.

Business Tax

  • Class 2 NIC for self employed workers is to be scrapped from April 2024.
  • Class 4 NIC for self employed workers is going to be reduced from 9% to 8%. The saving of both self employed NIC rates cut will be worth £350 a year.
  • Full expensing for capital allowances will be made permanent from April 2024, which means that every single pound a company invests in IT equipment, plant or machinery can be deducted in full and immediately from taxable profits. Every million pounds a company invests, it would get £250,000 off their tax bill in the same year.

Other Autumn Budget 2023 Key Points

  • Universal Credit and other working-age benefits to increase by 6.7% from April, in line with September’s inflation rate.
  • State pension payments to increase by 8.5% from April, in line with average earnings, worth almost an extra £900. The triple lock will be ‘’honoured in full’’.
  • A 75% discount in business rates for retail, hospitality and leisure firms has been extended for another year.
  • 30 hours of free childcare for working parents in England expanded to cover one and two-year-olds, to be rolled out in stages from April 2024.
  • The chancellor says forecasts from the Office for Budget Responsibility show the economy will grow by 0.6% this year and 0.7% next.
  • Inflation is expected to fall to 2.8% by the end of 2024 according to the spending watchdog, down from 11.1% last year.

If you want to know how this will affect your business, please get in touch with Direct Peak Accountants today.