The 2023 Autumn Statement brings substantial financial changes that effects everyone from employees and employers to pensioners. This is Pi Accountancy’s overview geared to unpack the key sections that could affect our clients.
Read the full documentation here: Autumn Statement 2023 – GOV.UK
Small to Medium-Sized Businesses
- National Living Wage: Wages for workers aged 21 and over will be raised by at least £1.02 to £11.44.
- Rates Relief: Extended relief for Retail, Hospitality and Leisure properties. 75% relief for Retail, Hospitably and Leisure sectors in 2024-25 up to £110,000 cash cap. Small business multiplier to be frozen for another year.
- Making Tax Digital (MTD): Simplified design benefitting around 1.7 million businesses and landlords.
- Full Expensing: Permanent full expensing for qualifying plant and machinery investment.
- VAT: Changes to compliance requirements for subcontractors and extension of the zero rate on Women’s Sanitary Products to include period underwear from January 2024.
- Corporation Tax: Full expensing made permanent, considered a significant tax cut.
- Construction Industry Scheme (CIS) Reform: Reforms to the Gross Payment Status test.
National Insurance and Savings
- Class 1 Employee NICs: 2% cut from January 2024, reducing from 12% to 10%.
- Class 4 Self-Employed NICs: 1% cut from April 2024, reducing to 8%.
- Class 2 NICs: Abolished from April 2024.
- Savings for Self-Employed: £192 per year minimum, with an average saving of £350 in 2024-25.
Pensions
- Triple Lock: Maintained with up to £900 year increase in the new State Pension.
- Pensions Tax Relief: Lifetime Allowance abolished from 6th April 2024.
- Pension Reforms: A comprehensive package to provide better outcomes for savers and enable pension funds to invest in a diverse portfolio.
- Lifetime Provider Model and Small Pots: Government launching a call for evidence to simplify the pensions market and consolidate small pension pots. This could result in pension savers having on lifetime pension pot.
- Pension Investment Expertise and Skills: Implementation of a register of trustees and updating the trustee toolkit.
The NHS
- Investment in Workforce: £2.4 billion additional investment over five years for NHS Long Term Workforce Plan.
- Students and Training Places: Planned increase to number of training places with the expectation to double the number of MHS students.
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