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Understanding the UK’s Tax Plans: A look at the 2023 Autumn Statement

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Understanding the UK’s Tax Plans: A look at the 2023 Autumn Statement

Self-Employed

• Abolition of Class 2 National Insurance payments for the self-employed, eliminating the mandatory flat-rate charge of £3.45 per week. This change will result in an annual savings of £192 for the average self-employed individual.

• Reduction of Class 4 National Insurance for self-employed individuals, lowering the rate from 9% to 8% on earnings between £12,570 and £50,270 starting April 2024.      These combined adjustments are expected to save approximately 2 million self-employed individuals an average of £350 per year from April 2024.

Employed

• Decrease in the National Insurance rate from 12% to 10% effective 6thJanuary 2024.

• Implementation of a 9.8% increase in the national living wage, raising it from £10.42 to £11.44 per hour in April 2024. This adjustment, applicable to individuals aged 21    and over for the first time (previously 23 and over), translates to a potential annual increase of up to £1,800 for full-time workers.

Pensions:

• An 8.5% increase in the state pension, reaching £221 per week starting April 2024.

BusinessTaxes:

• Introduction of a 25p in corporation tax reclaim for every £1 invested by businesses in IT, machinery, and equipment, allowing companies to claim this benefit in a single    year rather than spreading it over an extended period.

•Freeze in the calculation method for business rates, along with the continuation of a 75% discount on rates up to £110,000 for the hospitality and leisure industry for   another year. Additionally, alcohol duty remains frozen for another year. These measures are expected to result in significant savings,with independent shops saving   over £20,000 and independent pubs over £12,000 next year.

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