Autumn Statement 2023
Please find a summary of today's announcements where we highlight the key talking points.
National Insurance Contributions (NIC)
For the self-employed
Class 2 NIC
From the 6th April 2024, they will be abolished.
Although you will no longer make contributions you will continue to receive access to contributory benefits, including the state pension.If your business profits are under £6,725 in a tax year you can make voluntary class 2 contributions (currently £3.45 a week) to maintain your entitlement to relevant benefits.
Class 4 NIC
The main rate of Class 4 NIC will be reduced to 8% from 9%.
If you are employed
From the 6th of January 2024, the main rate of Class 1 NIC for employees will be reduced to 10% from 12%.
Businesses
75% business rates discount for retail, hospitality, and leisure.
The small business multiplier remains at 49.9p which calculates the premises rateable value.
Full expensing which was originally introduced from April 2023 for 3 years has been made permanent. This allows businesses to write off the full or relevant cost of qualifying plant and machinery investment.
National Living Wage
From 1st April 2024 the national living wage will increase to £11.44 (from £10.42).
The age threshold will also be lowered from 23 to 21 years old.
State Pension
It will increase by 8.5% from April 2024.
From £203.85 to £221.20 a week.
Other
Universal credit and other benefits will increase by 6.7% from next April.
All duties on beer, cider, wine and spirits to be frozen until the 1st August 2023.
Consultation on pension reforms to allow workers to have one pension for life
Back to work plan - mandatory work placements for jobseekers who have not found work after 18 months
