Chancellor, Jeremy Hunt, delivered his Autumn Statement this afternoon presenting an upbeat perspective on the economy and its prospects, an assertion subsequently rubbished by Shadow Chancellor, Rachel Reeves.
Regardless of your political perspective, there was something in the Budget affecting most people. Below is a summary of the changes:
For the employed
- National living wages rises to £11.44/hour from April 2024
- Class 1 employees NIC reduce by 2% to 10% with effect from 6 January 2024
For the self employed
- Class 2 NIC abolished for those earning over £12,570 from 6 April 2024
- From the same date, Class 4 NIC reduced by 1% to 8%
For business
- Full expensing of capital items made permanent
- Simplification of R&D by merging the RDEC and SME schemes
- Frozen alcohol duty
For individuals
- No change to Capital Gains Tax nor Inheritance Tax rules
- State pension to increase by 8.5% from 6 April 2024, maintaining the triple lock pledge
Administration
- More investment in HMRC to target debt due to HMRC
The above is by no means all of the measures announced, that will be found in our Autumn Statement Summary tomorrow.
With certainty supplied for a short period of time, taxpayers must still be aware, currently, of the likelihood of a change in government, signalling a potential shift in tax policy. Therefore, if you are planning any major changes such as investment decisions, family succession, remuneration planning etc, it would be wise to consider timing bearing in mind the next election will likely be in the next 12 months, with October 2024 currently the projected favoured date.
Our EQ Tax Experts are on hand to speak with you on any such matters but in advance of that, time to grab a drink, happily for the same price as before!