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Switch NowJeremy Hunt presented his Autumn Statement this week. The number of announcements made it closer to a budget.
In the usual run up to an election, HM Gov starts the traditional season of being pleasant to the parts of the electorate that they wish to secure votes from.
In summary they’re appealing to those who work (National Insurance cuts, living wage rise), those in receipt of benefits (universal credits increase) and those that have retired (state pension increase).
We won’t regurgitate all the changes as you can see them in the national press but we will highlight the bits we think are important to our clients.
The employee national insurance rates are falling from 12% to 10% in January 2024.
Class 2 national insurance is being abolished giving an annual saving of £179 from April 2024.
Class 4 national insurance is down 1% from April 2024.
Making Tax digital appears to still be on the cards for 2026 for the self employed and landlords. There appears to be some attempts at simplification but we will highlight these when actually finalised.
The employer national insurance rates are unchanged so no saving here.
The big announcement about the “full expensing” 100% first year allowances on brand new plant and equipment only benefits large businesses as small companies will still receive the 100% annual investment allowance. So no change here.
The National living wage will increase by 9.8% for those who are 21 and over, and by 14.8% for the 18-20 year olds. This will be a burden for small employers.
There were some minor changes to the Research and Development system but they affect very few companies.
So in our view there was nothing much in this Autumn Statement for small companies!
That’s all for now, but if you wish to discuss further any of the items raised in this email then please do contact us.
The Team at Cleverdons
Whether you are an existing business looking to switch accountants or you are a new start up. We would love to help, so switch to us today.
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