This year's Autumn Statement arrived at a time when many businesses and individuals alike are well and truly feeling the squeeze. With the performance of the economy better than expected this year (according to the Office for Budget Responsibility), but expected to grow slower than expected next year, no one could be certain what was going to be announced.
Mr Hunts first Statement last year saw many tax allowances reduced and rates frozen, resulting in an average increase in taxes and general reduction to people's pockets in real terms.
This year's statement bought much more welcome news for taxpayers, with the main focus being around National Insurance (NI) contributions. With effect from 6 January 2024, employees NI will reduce by two percentage points, to 10%.
A similar change will also apply to self-employed individuals and partners of partnerships; their rate of NI will reduce by one percentage point, from 9% to 8%, but not until April 2024. Class 2 NI contributions have also been scrapped for those with profits over £6,725 from 6 April 2024, saving what would have been a cost of £192 a year. The government have also decided to maintain the current rate of £3.45 per week for 2024/25 (rather than the £3.70 per week originally set) for those who pay Class 2 voluntarily.
To read more about the Autumn Satement, Whitings LLP have put together an excellent summary »
