The Chancellor of the Exchequer, Jeremy Hunt, delivered his Autumn Statement on 22 November 2023 and the key announcements have been summarised below:

National Insurance

For employees - the main rate of Class 1 employee National Insurance (on earnings of between £12,570 and £50,270) will be reduced from 12% to 10% from 6 January 2024.
For self-employed individuals,- the main rate of Class 4 National Insurance will be reduced from 9% to 8% from 6 April 2024.
Class 2 self-employed National Insurance (currently £179.40 in 2023/2024 tax year) will be abolished from 6 April 2024.
Despite the cut to national insurance rates, both national insurance and income tax thresholds – which determine when you start paying each tax – will remain frozen until April 2028 (as announced by the Government last year).

National Living Wage

National Living and Minimum Wage is being increased from 1 April 2024 to:

Aged 21 or over £11.44 per hour (currently £10.18 between 21-22 and £10.42 23+)
18 – 20 year olds £8.60 per hour (currently £7.49)
Under 18 year olds £6.40 per hour (currently £5.28)

Pensions and Benefits

The state pension will rise by 8.5% from April 2024 in line with the triple lock.
From April 2024, most benefits and tax credits in England and Wales will increase by 6.7%, in line with September's inflation.

Self Assessment and Making Tax Digital

Individuals who are income taxed only through Pay As You Earn (PAYE) and nothing else to report will not be required to file a Self Assessment tax return for 2024-25 onwards
From the 2024-25 tax year the cash basis will become the default method of calculating trading profits, with the existing turnover thresholds removed.
HMRC will clarify guidance for the self-employed on what training costs can be deductible for tax purposes.
Making Tax Digital for Income Tax (MTD ITSA) – quarterly reporting will go ahead for taxpayers with business or property income over £50,000 from April 2026:
- Those with income over £30,000 will enter the regime from April 2027
- Taxpayers with income under £30,000 will be kept under review – so ultimately may still be brought into the regime
- Taxpayers with no UK National Insurance number will be exempted from the MTD ITSA requirements

Tax for Businesses

‘Full expensing’ of capital expenditure for companies investing in qualifying plant and machinery is being made permanent, including the 50% allowance for qualifying special rate assets. This was originally announced as a temporary measure in the Spring Budget 2023, but has now been made permanent.
Business Rates - the current 75% business rate discount (up to a £110,000 cap) for retail, leisure and hospitality businesses will be extended for another year and that the business rate multiplier for small business would be frozen, again for a further year.

Other Points

No changes were announced in relation to Income Tax, Capital Gains Tax or Corporation Tax.

Despite much speculation prior to the Statement, no changes were announced in relation to Inheritance Tax or Stamp Duty Land Tax. It may be that we will hear more on these taxes in the 2024 Spring Budget.