OFFICE SPACE NORTH DORSET

What was in the Autumn Budget?

What was in the Autumn Budget?

The Chancellor announced his Budget this week but what was in the Autumn Budget? Here we highlight just a few of the policies that will make a difference to the work force as a whole and to small businesses:

https://www.gov.uk/government/publications/autumn-statement-2023/autumn-statement-2023-html

In the Autumn Budget the Government announced a business rates support package worth £4.3 billion over the next five years to support small businesses and the high street. The small business multiplier will be frozen for a fourth consecutive year, and Retail, Hospitality and Leisure (RHL) relief will be extended, ensuring the most vulnerable businesses continue to be supported. The standard rate multiplier will be uprated in line with CPI inflation. While this will increase business rates bills for some, large retailers are expected to benefit from hundreds of millions of pounds of tax relief per year as a result of full expensing (the capital allowance, which allows companies to deduct spending on new machinery and equipment from profits, made permenant in this budget after being introduced as temporary in Spring 2023).

Irelevent to what was in the Autumn Budget, all of our offices in North Dorset qualify for Small Business rates relief depending on circumstances, so once you apply, our inclusive Licence Fee’s are all you’ll need to budget for.

Apply for Small Business Rates Relief to reduce your business expenditure despite the Autumn Budget.

 

They will be cutting the rate of Class 1 National Insurance Contributions paid by employees from 12% to 10% from 6 January 2024 and cutting the main rate of Class 4 NICs, paid by the self-employed, from 9% to 8% from 6 April 2024.

At present, employees earning more than £12,570 a year pay 12% on their earnings up to £50,270, while self-employed workers pay 9%, but these levels are to be reduced to 10% and 8% respectively, representing an average annual saving of £450 for an employed individual with average earnings. Class 2 National Insurance, a flat rate for the self-employed is to be abolished, simplifying tax for many.

The government is delivering on its commitment to end hourly low pay. From 1 April 2024, the National Living Wage (NLW) will increase by 9.8% to £11.44 with the age threshold lowered from 23 to 21 years old. This represents an increase of over £1,800 to the annual earnings of a full-time worker on the National Living Wage and is expected to benefit over 2.7 million low paid workers.

The government is also reforming the welfare system so it better supports people into work where they are able, focusing on the long-term sick and disabled, and long-term unemployed. The government’s Back to Work Plan, supported by over £2.5 billion in funding over the next five years, is an ambitious new programme to help people look for and stay in work, manage their health conditions, and stem the flow into sickness related inactivity in order to increase levels of employment.  For those that cannot work for legitimate reasons there must always be a safety net. The government will uprate all working age benefits for 2024-25 in full, by September 2023 CPI inflation of 6.7%.