{"id":1926,"date":"2023-11-24T16:00:10","date_gmt":"2023-11-24T16:00:10","guid":{"rendered":"https:\/\/www.newmillennia.co.uk\/?p=1926"},"modified":"2023-11-24T15:53:56","modified_gmt":"2023-11-24T15:53:56","slug":"the-autumn-statement-2023","status":"publish","type":"post","link":"https:\/\/www.newmillennia.co.uk\/blog\/the-autumn-statement-2023\/","title":{"rendered":"The Autumn Statement 2023"},"content":{"rendered":"

Chancellor of the Exchequer, Jeremy Hunt, delivered the Autumn Statement on 22nd November 2023. He announced the biggest tax cut since the 1980s and a package of 110 measures to support businesses.<\/span><\/p>\n

Below is a summary of the main announcements. Here at New Millennia, our specialists will take you through the upcoming changes and what they\u2019ll mean for you and your business.<\/span><\/p>\n

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Business Tax Break Made Permanent\u00a0<\/strong><\/p>\n

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The <\/span>biggest permanent tax cut in modern British history<\/span><\/a> was announced in the Autumn Statement. At the Spring Budget earlier this year, the government replaced the super deduction regime with \u2018full expensing\u2019 and this change is to be made permanent.<\/span><\/p>\n

This allows your business to write off the cost of qualifying IT equipment and machinery investment against your taxable profits. It includes a 100% first year allowance for main rate assets and 50% first year allowance for special rate assets. This is designed to encourage businesses to invest with confidence and is forecast to boost business investment by \u00a314 billion in the UK.<\/span><\/p>\n

With a <\/span>Tailored Accountancy Package<\/span><\/a> from New Millennia, we\u2019ll handle your business tax for you with ease and accuracy. Our experts will manage your Corporation Tax, Self Assessment and VAT Returns, leaving you to get on with growing your business.<\/span><\/p>\n

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Tougher Regulation To Improve Payments<\/strong><\/p>\n

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Measures were also announced to enable small businesses to get paid on time. There will be tougher regulation on late payers, through an extension of the <\/span>Reporting on Payment Practices and Performance Regulations<\/span><\/a>. This will be accompanied by a Cash Flow Review and broadening of Small Business Commissioner Powers. <\/span>In 2022, Small and Medium-sized Enterprises (SMEs) were owed \u00a322,000 in late payments<\/span><\/a> but these announcements should mean an improvement in payment culture.<\/span><\/p>\n

At New Millennia, we know that receiving payments on time also comes down to an efficient and accurate invoicing process. <\/span>Outsource your invoicing with our back office solutions service<\/span><\/a> to help things run as smoothly as possible.<\/span><\/p>\n

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Other Measures To Back Businesses<\/strong><\/p>\n

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More news for small businesses came with the announcement of a business rates support package. Worth \u00a34.3 billion, this will be rolled out over the next 5 years, specifically to aid small businesses. Included is a freeze on the small business multiplier for a fourth year in a row, keeping your bills lower. Plus, 2024 will bring the removal of cash basis turnover limits. Unincorporated businesses of any size will now be able to use it as their default method for computing profits.<\/span><\/p>\n

Another measure to be aware of is the merging of the <\/span>R&D Expenditure Credit and Small and Medium Enterprise Scheme<\/span><\/a> for accounting periods beginning after 1 April 2024. These changes will affect you if your business claims tax relief under either scheme. The merger will simplify and improve the system, now incorporating the PAYE scheme and National Insurance contributions cap.\u00a0<\/span><\/p>\n

What this means in practice is a removal of the complex rules around which businesses qualify to claim for costs. Within this new merged scheme, the threshold for additional support for R&D intensive loss-making SMEs will be lowered to 30%, benefiting a further 5,000 SMEs.<\/span><\/p>\n

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Personal Tax Cuts<\/strong><\/p>\n

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Class 1 NICs will be reduced from 12% to 10% which <\/span>will save the average worker \u00a3450 a year<\/span><\/a>. This will be introduced quicker than is conventional, coming into effect from 6th January 2024. For the self-employed, Class 2 NICs will be abolished from April 2024 and Class 4 NICs will be reduced from 9% to 8%.<\/span><\/p>\n

No changes were announced for CGT, dividend income, or tax-free personal allowance.<\/span><\/p>\n

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Greater Manchester Investment Zone<\/strong><\/p>\n

Greater Manchester was announced as one of the three locations for new investment zones, together with the East Midlands and the West Midlands. \u00a3160 million of public funding will be allocated to boost the region\u2019s advanced manufacturing and materials sector. This will include sector-focused skills programmes, local infrastructure enhancements, and targeted business support.<\/span><\/p>\n

The government has also confirmed plans to extend the <\/span>Made Smarter Adoption programme<\/span><\/a> following its successful pilot in the North West. The programme helps SME manufacturers adopt digital technologies to improve productivity and reduce carbon emissions.<\/span><\/p>\n

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Other Measures\u00a0<\/strong><\/p>\n

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