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  • Stephen Kelly

THE 2023 AUTUMN STATEMENT

The 2023 Autumn Statement was fairly light on any real content, so below is a summary of the few points that are relevant to individuals and small businesses.


NATIONAL INSURANCE CHANGES


SELF EMPLOYED

National Insurance Contributions (NIC)

Class 2 NIC is currently paid by the self-employed whose profits exceed £12,570, charged at a flat rate of £3.45 per week.

From next tax year 2024/2025 this will be scrapped.


Class 4 NIC - are currently (2023/2024) paid at a rate of 9% on profits between £12,570 and £50,270 and 2% on profits that exceed £50,270.

From 2024/2025, the initial rate will drop down to 8% saving sole traders up to £377 a year.


LIMITED COMPANIES

The Full Expensing Capital Allowances (for Limited companies) will be made permanent


The full expensing scheme allowed UK companies to deduct 100% of the cost of certain types of equipment from their profits in the year it was purchased, as without this scheme only a proportion would be deductible in each tax year in a form of depreciation.

The scheme that was due to end in early 2026 will now continue for the foreseeable future.


NATIONAL LIVING WAGE AND MINIMUM WAGE

Both the above will increase with effect from April 2024.


The national living wage for employees aged 21 and over, will increase by £1.02 to £11.44 per hour.


The national minimum wage for 18 to 20 year olds will increase by £1.11 to £8.60 per hour.


The national minimum wage for 16 to 17 year olds and apprentices will increase by £1.12 to £6.40 per hour.



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