Autumn Statement Headlines 2023

Today, Chancellor Jeremy Hunt presented 110 measures aimed at fostering economic growth. While we won't delve into all of them, our tax team has scrutinised the specifics and highlighted the primary implications for individuals and businesses in Northern Ireland.

Individuals

Universal Credit will be increased to 6.7% from April 2024.
State Pension will also be increased by 8.5%, to £221.20 per week.
From 1 April 2024, the National Living Wage (NLW) will increase by 9.8% to £11.44 and the age threshold will be lowered from 23 to 21 years old.
The rates for 18–20 year-olds will increase to £8.60 per hour and 16-17 year olds will be £6.40 per hour (aligned to the Apprenticeship Rate) from April 2024.
For those self-employed the Class 2 NIC rate will be abolished from April 2024, saving £180 per year.
The rate of Class 4 NIC will also for self-employed from 9% to 8%.
For employees, the NIC rates will also be reduced to 10% for earnings between £12,570 and £50,268 albeit earlier from 6 January 2024, saving the average NI employee here £400 per year.
Personal Allowances and thresholds remain frozen, as announced by the Chancellor in the Spring.

Businesses

The anticipated merging of the SME and Large ‘RDEC’ R&D schemes will come into effect for accounting periods beginning on or after 1 April 2024. This will see some simplicity provided to companies who receive grants or subcontract costs.
The SME ‘intensive’ R&D scheme announced in the Spring will be extended to include more businesses, with the ‘intensive’ threshold being reduced from 40% to 30%.
The ‘Full Expensing’ regime provides 100% tax relief on qualifying equipment acquired from April 2023 has now become permanent.
No changes to VAT thresholds or rates, this time.

Contact our tax team for more specific advice: Lorraine Nelson.