"The freeze on income tax and NIC thresholds, which have been kept unchanged since 2021 and will remain so until 2028, could have a more significant impact on our taxes. This could lead to a larger group of people paying taxed or being pushed into the higher tax brackets, effectively cancelling and benefit they have had from the Autumn Statement giveaways."
were not aware of!). HMRC are also simplifying the process for those who are within the High Income Benefit Charge and need to repay child benefit payments they have received. Impact of the Autumn Statement As noted by several commentators, the freeze on income tax and NIC thresholds, which have been kept unchanged since 2021 and will remain so until 2028, could have a more significant impact on our taxes. This could lead to a larger group of people paying taxes or being pushed into the higher tax brackets, effectively cancelling any benefit they may have had from the Autumn Statement's giveaways. Additionally, the surge in inflationary increases in food and other bills and the soaring energy and fuel prices will further increase costs on businesses. While the announcement of making full expensing permanent is a welcome move towards boosting growth, it may not be beneficial
providers, may find it challenging to pay the increased National Living Wage. Furthermore, the cut in NIC does not extend to employers NI contributions, which could be a disappointment for struggling businesses. Predictions I think that the following quote from Jeremy Hunt’s statement to the House sets out the direction the government is looking to take in the lead up to the General Election. “We cut taxes to help bigger businesses invest, we cut taxes to help smaller businesses grow. We cut taxes for the self-employed and keep our country running and from January we cut taxes for 27m working people whose hard work drives our economy forward.” Which taxes will he cut and how far these cuts will go remains to be seen.
for smaller businesses that do not have significant IT, machinery, or equipment costs.
yedidya.zaiden@raffingers.co.uk
The Chancellor aims to encourage people to return to work through changes in benefits and tax cuts for employees. However, many employers as well as councils and care
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THE LEGAL CORNER MAGAZINE | ISSUE 006 JANUARY '24 | KEEPING THINGS SIMPLE – WHAT TO EXPECT IN 2024 HB 12
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