The Autumn Statement of 2023 is here, and it’s packed with interesting changes that could mean good news for both individuals and businesses. Let’s have a casual stroll through what’s new and see how these bits and pieces might brighten your financial picture.
Cheerful Cuts in National Insurance Contributions (NICs):
From 2024, we’re looking at a nice drop in NICs. For employees, Class 1 NICs are going down from 12% to 10%, and if you’re self-employed, you’ll see Class 4 NICs reduce from 9% to 8%. Plus, no more Class 2 NICs for self-employed folks earning above £12,570 starting April 2024. A bit more money in your pocket – always a good thing, right?
If you’re a PPF client and we run your payroll or file your personal tax returns then there is nothing for you to do; we’ll handle this for you!
Extended NICs Relief for Veteran Employment:
If you’re running a business and hiring veterans, here’s some good news – the NICs relief is sticking around until April 2025. It’s a great way to thank those who’ve served and get a little financial benefit for your business too.
Capital Allowances – Here to Stay:
Full expensing and the 50% first-year allowance are now permanent fixtures. This is a big thumbs-up for businesses thinking about serious investments – a solid financial incentive to get the ball rolling.
Boost for Creativity and Innovation:
There’s extra support for SMEs in research & development and extended tax reliefs in freeports and creative industries. Looks like a bright future for innovation and business growth.
Simplifying Tax with MTD for ITSA:
Making Tax Digital for ITSA is getting simpler, making tax reporting a bit less of a headache. A welcome change, indeed. The big plus? Those quarterly updates are now going to be cumulative, not one after the other – a real time-saver.
They’ve scrapped that extra End Of Period Statement. That’s one less thing to worry about, right? The income threshold for this stays put at £30,000, so it’s really focused on making things manageable for a wide range of taxpayers.
PPF is already fully onboard with the digital way of life so come 2026 when this rolls out, we’ll be way ahead of the curve!
Uplifting the National Minimum and Living Wage:
The National Living Wage is jumping to £11.44 an hour from April 2024. It’s a move that’ll put a smile on the faces of many workers. Apprentices and young professionals aren’t left out – they’ll see a rise in their wages too.
Once again, for PPF clients – if we run your payroll we will adjust this automatically for you. On the flip side, this does mean an increase in costs for employers, so if you would like some help with budgeting or cash flow to determine what these changes mean for you, then we can help
Fairer Application of Off-Payroll Working (IR35) Rules:
Changes to IR35 rules in 2024 are set to make things fairer in PAYE liability calculations. It’s all about clarity and fairness for businesses and contractors.
So, that’s the scoop on the 2023 Autumn Statement. It’s quite a mix, with a little something for everyone, but remember, we’re all in different boats. What works wonders for one might not for another. When in doubt, it’s always a good idea to have a natter with your accountant. They’re the experts in making sense of these things and can help you work out exactly what it all means for you or your business.
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