The Autumn Statement 2023 brings pivotal changes impacting entrepreneurs, self-employed individuals, and employers across the UK. At Grenfell James, we’re committed to empowering businesses with insights that matter. Let’s delve into the key takeaways from Helen Gill our Client Manager:
Abolishment of Class 2 National Insurance (from April 2024)
For the self-employed, this means a lighter tax load to HMRC. Moreover, entitlements like the full state pension remain accessible without this additional tax.
Reduction in Class 4 National Insurance (8% from 9%)
Expect reduced tax obligations for profits between £12,570 and £50,270, offering more financial flexibility.
“I said we would cut taxes when we could – but only responsibly and only in a way that did not fuel inflation.”
Jeremy Hunt, speaking in the Commons: Autumn Statement 2023
National Living Wage Increase (April 2024)
With the hourly wage rising to £11.44 for individuals aged 21 and above, employers need to review wages accordingly. Employees will witness a slight increase in PAYE but enjoy a higher take-home pay.
Reduction in Employee National Insurance (from January 2024)
Employees will experience an uptick in take-home pay due to reduced tax deductions, a welcome aid amid the current cost-of-living crisis.
Full Expensing Capital Allowance Threshold
Limited companies investing in qualifying assets (e.g., IT equipment, vans) can benefit from 100% tax relief on expenditures up to £1 million, offering substantial corporation tax benefits.
Continued Free Childcare Plan
The existing childcare support remains intact, phased to provide 30 hours of free childcare for children over 9 months by September 2025. This phased approach begins in April 2024 and aims to support working parents with additional cash and flexibility.
At Grenfell James, we understand the importance of these changes and their impact on your business. If you’re a small business owner seeking guidance on navigating these developments, our team is here to help. Reach out today to explore how we can simplify and revolutionise your business.