Key points from the Autumn Statement 2023
24 November 2023
A reminder of the Chancellors key points from the Autumn Statement 2023
- Employee National Insurance Reduction: Starting January 6th, the Employee National Insurance rate will decrease by 2% to 10%, down from the previous 12%.
- Self-Employed Class 2 NICs cut: Effective from April, self-employed individuals earning over £12,570 will no longer be required to pay the weekly £3.45 Class 2 National Insurance contributions.
- Class 4 NICs Reduction: Commencing April, a 1% reduction in Class 4 National Insurance contributions will apply to profits ranging from £12,570 to £50,270.
- National Living Wage Increase: From April, the National Living Wage will rise from £10.42 to £11.44 per hour, extending to individuals over 21 years old.
- State Pensions Up: Starting April, the state pension will experience an 8.5% increase.
- Universal Credit Boost: Effective April, there will be a 6.7% rise for those receiving Universal Credit.
- Permanent Full Expensing Tax Break: Businesses can now permanently deduct machinery and equipment costs from their profits.
- Extended Discount for Hospitality, Leisure, and Retail: The 75% business rate discount for the hospitality, leisure, and retail sectors will remain in place for an additional year.
Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA)
The Bank of England has cut the base rate to 4%. Find out what this means for trades and construction businesses, from borrowing costs to cash flow.
If you're a sole trader or landlord earning over £50,000 a year, big changes are coming your way. From April 2026, you'll need to comply with Making Tax Digital for Income Tax (MTD for ITSA) and while that might sound like it's a long way off, it’s closer than it seems. At Books and Business, we work closely with those in the trades and construction sector, and we know that admin is rarely top of the to-do list when you're running jobs, managing quotes, and keeping customers happy. But this change will affect how you keep records and report your income, so starting early is key. Lets get into what MTD for ITSA means for your business and more importantly how we can support you every step of the way.
