In the Autumn Statement delivered on 22nd November, the Chancellor did not announce any changes in respect of Income Tax rates or allowances or the rates of Corporation Tax. He also did not announce any changes to Capital Gains Tax, Inheritance Tax or VAT thresholds.
Changes that were announced included the following:-
National Insurance Contributions (NICs)
Self-Employed
Class 2 NICs will be abolished from April, 2024 thereby saving £3.45 per week (£179.40 per year) for those with profits over £12,570. Those with profits over £6,725 will still have access to contribution benefits including the State Pension. Those with profits under £6,725 will be able to continue paying voluntary NICs.
The rate of Class 4 NIC on profits between £12,570 and £50,270 will be reduced from 9% to 8% from April, 2024. This will save £377 for someone with self employed profits of £50,270 or more.
Employees
The main rate of national insurance will be cut from 12% to 10% from 6th January 2024. The main rate applies to earnings between £242 to £967 per week so for someone earning £50,000 per year this could save NICs of £14.38 a week or £748 per year.
Capital Allowances
Full expensing which was introduced in the Spring Budget earlier this year until the end of March, 2026 has been made permanent. This allows Companies to claim 100% capital allowances on qualifying plant and machinery expenditure up to any amount in the year that expenditure is incurred. This does not apply to unincorporated businesses which are still entitled to claim the Annual Investment Allowance on expenditure up to £1 million per year.
Other changes were made in the Autumn Statement, but the above is a summary of the main tax changes affecting the majority of clients.
If you have any queries regarding the above please do not hesitate to contact us on 01769 308015 or info@wardandcoaccountants.co.uk.
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