Autumn Budget 2023

While last year the Chancellor used his fiscal speech to brace the UK for the “storm” of tax rises, this year Hunt was able to turn his attention to cutting taxes. Against the backdrop of a cost-of-living crisis, a near-stagnant economy and a looming election, the 2023 Autumn Statement was seen to reflect a pivotal moment in the UK’s economic trajectory.

The key points from the Budget are:

• Tax cut – The government will cut the main rate of Class 1 employee NICs from 12% to 10% which will take effect from 6 January 2024 – Payroll – Issues Software suppliers to amend packages! Minimum wage changes £11.44 for 22 year olds from April 24
• Package of investment worth £20 billion a year to support growth in the economy. This is fully expensing capital investments. Great news
• Tax cut – Cutting National Insurance for the self-employed. From April people will no longer have to pay Class 2 and will cut Class 4 from 9% to 8%
• Rates – Freeze small business multiplier will be frozen for the 4^th consecutive year. Retail, Hospitality and Leisure (RHL) 75% relief will be extended to ensure the most vulnerable businesses can be supported.
• Payment terms – From April 2024, firms bidding for government contracts over £5 million will have to demonstrate they pay their own invoices within an average of 55 days, tightening to 45 days in April 2025, and to 30 days in the coming years – relevant to SMEs who deal with large companies

To read our full article on this year’s Autumn Budget, please click here.

To view our tax card please click here.