Autumn budget – hear my views on BBC Radio Cambridgeshire today 23/11/23

Chancellor Jeremy Hunt used his Autumn Statement to deliver a fiscal pick-me-up for the Conservative backbenchers at the start of an election year with a 2% cut to national insurance, and making the full expensing capital allowance scheme permanent. Here are the relevant points that impact small businesses:

For the self employed, Hunt abolished class 2 national insurance and cut class 4 national insurance from 9% to 8%. 

For individuals, he also confirmed that the national living wage will increase for 23-year-olds and over to £11.44 per hour from April. This is equivalent to a £2K payrise in the year for a full time employee. The minimum wage increase will be welcomed by lower earners, but could add further strain on struggling businesses. 

Tax measures

Among the tax measures Hunt announced in response to having a more-generous-than-expected fiscal headroom were: 

  • Main rate of national insurance cut to 10%
  • abolishing class 2 national insurance contributions (NIC) 
  • a 1% cut to class 4 NIC 
  • a permanent extension of the full expensing capital allowance scheme
  • national living wage increased for 23-year-olds and over to £11.44 per hour
  • freeze all alcohol duty until 1 August 2024
  • increase state pension by 8.5%
  • confirmation of the new merged research and development (R&D) scheme
  • freeports extended for another five years
  • 75% business rate discount for retail, hospitality and leisure extended until 2025
  • tax relief for visual effects expenditure

If you are concerned about any aspect of your business and how the new budget might impact you please feel free to get in touch with LeeP accountants on 01733 699033 to arrange a consultation

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