Chancellor’s Autumn Statement

Chancellor’s Autumn Statement

Autumn 2023 Statement

After much rumour and speculation, the Chancellor has today set out his Autumn Statement and what this will mean, in theory, to the pockets of business owners and their employees.

Our team of business lawyers will digest and review these proposed changes over the coming days but we have summarised briefly below some of the key changes.

National Living Wage

As expected, the Chancellor has confirmed that from April 2024 the National Living Wage will increase to £11.44 per hour.

Whilst the National Living Wage has in the past applied to those aged 25 and over, from 01 April 2024 those aged 21 and over shall be entitled to the National Living Wage. This means the following rates will apply from April 2024:

• National Living Wage (21 and over) = £11.44
• 18-20 Year Old = £8.60
• 16-17 Year Old = £6.40
• Apprentice Rate = £6.40

National Insurance

The rate of employee National Insurance will also be cut by 2% so that, from 06 January 2024, the rate will be 10%.

Class 2 National Insurance (paid by the self-employed) is set be abolished.

Class 4 National Insurance (paid by the self-employed), will be cut from 9% to 8% from April 2024.

Annual Investment Allowance

The annual investment allowance (AIA) provides 100% tax relief on purchases of assets qualifying as plant and machinery, (but not cars).

The annual investment allowance for businesses remained at £1m per annum, meaning that a business investing £1m per annum on qualifying assets would save £250k in Corporation Tax.

Business rates for small businesses in retail, hospitality and leisure

The 75% discount on business rates for businesses operating in these sectors is extended for another year.

State Pension

The State Pension will increase by 8.5% from April 2024, to £221.20 per week.