On 22 November 2023, the Chancellor Jeremy Hunt published the government's Autumn Budget.
National insurance changes
Self-employed National Insurance
The Class 2 and Class 4 National Insurance contributions were introduced to help self-employed qualify for benefits such as the State pension, Maternity Allowance, Bereavement benefits and more.
Currently, any self-employed person with profits of £12,570 or more a year will need to pay Class 2 and Class 4 National Insurance.
From the 6 April 2024, Class 2 self-employed National Insurance contributions will be abolished. This change will see a self-employed person save up to £192 a year. Voluntary Class 2 National Insurance contributions can still be made after 6 April 2024, at the same fixed price of £3.45.
Class 4 self-employed National Insurance contributions will be cut from 9% to 8% on profits between £12,570 - £50,270. However, the 2% rate will stay the same on profits above £50,270.
| 6 April 2023 | 6 April 2024 |
|---|---|---|
Class 2 NI | £3.45 a week | Will be abolished |
Class 4 NI | 9% on profits between £12,570 - £50,270 2% on profits above £50,270 | 8% on profits between £12,570 - £50,270 2% on profits above £50,270 |
Class 1 National Insurance
From 6 January 2024, Class 2 national insurance contributions will be cut from 12% to 10% on earnings between £12,571 - £50,271
Full expensing
Capital allowance
On 1 April 2023, full expensing was introduced after it was announced in the Spring Budget 2023. This measure allows businesses to deduct capital investments from their profits to reduce their tax bill at the end of the year. When the measure was announced, it was only going to last until 5 April 2026, however, in the Autumn Budget 2023, it was announced that the measure would be permanent.
Business Rates Relief
Business rate multiplier
For the fourth year, the small business multiplier in England will be frozen at 49.9p. The standard multiplier however will be increased to 54.6p.
Retail, hospitality, and leisure relief
The current relief of 75% that RHL properties are eligible for will be continued for another year. These RHL properties will also be eligible to receive support of up to £110,000 per business.
National Living Wage increase
From April 2024 the National Living Wage will be increased from £10.42 to £11.44 for workers aged 21 and over.