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Vanessa's Viewpoint: Autumn Statement 2023

For the last few weeks, the media have been debating if the “big news” from the Autumn Statement would involve inheritance tax. Much has been made of the economy turning a corner and that reduced inflation meant the chancellor would have greater options than in the Spring Budget.

In the hours before the Statement, rumours started that National Insurance might be where this additional money could be spent. With a general election likely next year, something big was expected.

The Chancellor announced a 2% cut in the Class 1 National insurance paid by employees from 6 January 2024. The self employed were not left out, with Class 2 National insurance abolished and Class 4 reduced from 9% to 8%.

The minimum wage will rise to £11.44 per hour from April 2024, with the eligible age dropping from 23 to over 21’s. Under 21’s rates will also increase by more than £1 per hour.

For businesses: the new, simplified research and development credit scheme will be going ahead. The extension of business rates relief is also welcome.

In conclusion, the much-anticipated Autumn Statement brought about significant changes, particularly in the realm of National Insurance. The 2% reduction in Class 1 National Insurance for employees and the adjustments for the self-employed mark a notable step. The forthcoming increase in the minimum wage, coupled with a wider age eligibility, reflects the government's steps to addressing economic challenges.

Additionally, the positive news for businesses includes the implementation of the simplified research and development credit scheme and the extension of business rates relief. These measures aim to stimulate economic growth and provide support where it's needed.

As we navigate these changes, it's essential for individuals and businesses alike to stay informed and adapt to the evolving economic landscape. We will continue to monitor developments closely and provide insights to help you make informed decisions.

If you have any questions or would like personalised accountancy advice based on these updates, feel free to get in touch with us. Here's to navigating the future with resilience and foresight!