Chancellor Jeremy Hunt’s Autumn Statement 2023 has introduced a series of impactful measures, crucial for businesses who are navigating the current economic climate. Our briefing focuses on important updates in taxation and business support, highlighting how these adjustments are set to influence the UK’s business landscape.
Taxation and National Insurance – What’s Changing?
Employee National Insurance
Effective from January 6, 2024, Employee National Insurance contributions will see a reduction from 12% to 10%. This change is anticipated to benefit about 28 million individuals, offering an average saving of £450 per year for median earners.
Revised National Insurance for Self-Employed
The abolition of Class 2 National Insurance for self-employed individuals will result in an average saving of £192 annually. Additionally, a reduction in Class 4 National Insurance from 9% to 8% on certain earnings will further benefit around 2 million people.
Encouraging Business Investment
The Chancellor has institutionalised a permanent tax relief for businesses, encouraging investment and growth through corporation tax savings.
Wage Structure and Business Investments – New Developments
Uplifting the National Living Wage From April 2024, the National Living Wage will increase to £11.44 per hour, a significant 9.8% rise, applicable to those aged 21 and above.
Strategic Investments in Key Sectors
The budget allocates £4.5 billion for strategic sectors like aerospace and life sciences, along with £500 million for AI innovation centres, marking a substantial investment in technology and manufacturing.
Simplifying R&D Tax Relief
A new, streamlined tax relief scheme for research and development is set to merge existing schemes, benefiting loss-making companies with a reduced tax rate.
Full Expensing Scheme for Business Investments Made Permanent
Businesses can now permanently offset investments in assets such as IT equipment and machinery against their tax liabilities.
Support for Retail, Hospitality, and Leisure Sectors
Extended Business Rates Discount
The extension of a 75% discount on business rates for another year, capped at £110,000, is a significant relief for businesses in the retail, hospitality, and leisure sectors.
Guiding You Through the Autumn Statement 2023
BK Plus is dedicated to providing ongoing support and clear insights into the Autumn Statement 2023. Recognising the importance of these changes for businesses, we have produced a detailed guide that will offer a thorough analysis of the budget’s implications. This guide will serve as a valuable resource for understanding the impact of the new measures on your business operations and financial planning. Download it here!