What does the Autumn Statement mean to me?

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The Chancellor opened the session in high spirits, with high hopes and 110 growth measures up his sleeve: discussing levelling up and cutting business taxes… Inflation, growth and debt levels were discussed and electricity incentives if you live near the infrastructure, tobacco duties for roll ups increasing and veteran’s employee national insurance frozen. A focus on higher productivity to increase investment and again alluding to measures to unlock investment and back British Businesses. I had high expectations and whilst any relief/savings for small businesses are welcome, in my opinion today’s statement only scratches the surface.

Let’s dive into the key points tailored to different groups:

Limited Company Owners

For small business owners eagerly anticipating the details of the largest business tax cuts in decades, the reality might not be as exciting as hoped:

  • Business rates for small businesses will be frozen for another year, with a 75% reduction extension for sectors like hospitality and retail, for eligible businesses.
  • Full expensing is now permanent, meaning you can spend over £1million on machinery, kit, tables and chairs and claim all of it in the year of buying.
  • National Minimum Wage has seen over a 9% increase, moving to £11.44 necessitating forward-thinking for businesses with staff earning £10.42.
  • Changes to pension payments will require employers to honour requests for new employees to contribute to an existing pension scheme.
  • Alcohol duty remains frozen for those in the pub and restaurant business.
  • There are measures to simplify the complex R&D system and a focus on £50 million funding for apprenticeships in key growth industries.

Sole Traders

For sole traders, changes to National Insurance Contributions (NIC) are in the spotlight:

  • Class 2 NIC, previously paid weekly at £3.45 for profits over £12,570, is being abolished.
  • Class 4 NIC, taxed at 9% for profits over £12,570, will be reduced to 8%.
  • These changes are expected to bring an average saving of £350 for sole traders.

Employees/Individuals

Employees have reasons to smile with some positive changes:

  • The National Minimum Wage is set to increase from £10.42 to £11.44 per hour.
  • Employee National Insurance will see a reduction from 12% to 10%, potentially saving up to £450 per year for those earning around £50,000.
  • State pension is set to increase by 8.5% to £221.20 per week in April 2024.

In summary, the budget brings both opportunities and considerations for different segments of the population. While some may find relief in the announced measures, others might feel that the budget falls short of their expectations. As we navigate through the details, it’s crucial for businesses and individuals alike to stay informed and adapt to the changing fiscal landscape.

Hear Bev’s thoughts

Head on over to LinkedIn to hear our Bev’s thoughts

https://www.linkedin.com/feed/update/urn:li:activity:7133132092187521024/

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