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Supporting those in Work Alongside this, the message was that the government wants to support those in work. The national living wage will increase in the Spring by almost 10% to £11.40 an hour and eligibility will be ex - tended by reducing the age threshold from 23 to 21, benefitting around 3 million low paid workers. A headline feature of the Autumn Statement was the reduction in National Insurance Contributions (NIC) to 10% for employees and 8% for self-employed individuals, and the removal of Class 2 NIC for the self-employed. This bold move not only eases the financial burden on the working class but also seeks to incentivise entrepreneurship. The reduction in NIC for the self-employed aligns with the government's commitment to supporting the gig economy and small businesses, recognizing their crucial role in the overall economic landscape.
YEDIDYA ZAIDEN Partner, Raffingers Accountants
By the time you read this, the autumn statement delivered by the Chancellor in November 2023 will be likely be a distant memory with the focus turning towards the Spring Budget in March 2024. However, with speculation of a general election in May 2024, the autumn statement was seen by many to be laying the foundations for the tax landscape ahead of the election. A look at some of the key announcements may well hold the key to predictions of future tax policy. Open for Business The underlying theme of the Statement was that Britain is open for business with the Jeremy Hunt boasting that his Statement contained 110 measures which would stimulate growth. The focus of the government to encourage innovation and development was underlined by the decision to extend investment zones and expand the tax reliefs available to “freeports”. By creating environments conducive to investment, the government aims to spur economic growth, attract foreign capital, and foster job creation. Businesses welcomed the announcement that ‘full expensing’ will now be permanent. The relief which was scheduled to be limited to accounting periods ending on 31 March 2026, enables businesses to claim a first-year allow - ance of 100% on qualifying capital expenditure (50% on special rate items) they incur and will allow businesses to plan their investment in capital expenditure with more certainty.
Simplifying the Tax Landscape There were some welcome
announcements which indicated that the government is seeking to simplify aspects of the tax system. The simplified cash basis of accounting which removes the requirement for businesses to make accruals when preparing their accounts has already been adopted by over one million small businesses. Having consulted on this, the treasury have now published four changes to expand the scheme that will apply from 6 April 2024. The self-assessment income threshold will increase from £100,000 to £150,000 with the intention to remove the thresh- old altogether from 2024/25. This means that many who were previously ‘taxed at source’ but were still required to submit tax returns on the basis of their income, will no longer have to do so (or incur penalties for missing deadlines they
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