Summary of the 2023 Autumn Statement

  • National Insurance will be cut from 12% to 10% from January 2024
  • Self-employed people with profits above £12,570 will no longer be required to pay Class 2 National Insurance Contributions (NICs) but will continue to receive access to contributory benefits and entitlements
  • The main rate of Class 4 self-employed NICs will be cut from 9% to 8%. This will take effect from 6 April 2024
  • The Government will freeze the Lower Earnings Limit (LEL) and the Small Profits Threshold (SPT) for NICs at 2023-24 levels in 2024-25
  • The National Living Wage has been increased to £11.44 per hour from April next year. It will now extend to workers of 21 and 22 years of age. Previously, the National Living Wage only covered those over 23
  • Individuals with income taxed only through Pay As You Earn will no longer be required to file a Self-Assessment return from 2024-25
  • The Government is extending the Growth Market Exemption, a relief from Stamp Duty (SD) and Stamp Duty Reserve Tax (SDRT), to include smaller, innovative growth markets. This will be implemented from 1 January 2024
  • From 1 April 2024, R&D claimants will no longer be able to nominate a third-party payee for R&D tax credit payments, subject to limited exceptions, and no new assignments of R&D tax credits will be possible from 22 November 2023
  • Following its review into the impact of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) on small businesses, the Government will maintain the current MTD threshold at £30,000 and introduce design changes to simplify and improve the system. These changes will take effect from April 2026
  • The Government has said that it will merge the existing Research and Development Expenditure (RDEC) and SME schemes, with expenditure incurred in accounting periods beginning on or after 1 April 2024 to be claimed in the merged scheme. The notional tax rate applied to loss-makers in the merged scheme will be lowered from 25% as per the current RDEC scheme, to 19%
  • Full expensing will be made permanent, enabling investments made by companies in qualifying plant and machinery, after 1 April 2026, to continue to qualify for a 100% first-year allowance for main rate assets, and a 50% first-year allowance for special rate (including long life) assets
  • For 2024-25, the business rates small business multiplier in England will be frozen for a fourth consecutive year at 49.9p, while the standard multiplier will be uprated by September CPI to 54.6p

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