As we write this Jeremy Hunt has just finished his Autumn Statement, part of the plan which Hunt himself believes will tackle the cost of living crisis and rebuild the UK economy. The chancellor says his priorities are stability, growth and public services, and in this Autumn Statement will be providing “fair solutions” despite taking “difficult decisions”. We understand that many of these changes will affect our clients and help may be needed to navigate the new rules. Please feel free to contact F9 on 0800 169 3278 for advise or read on for a summary of the Autumn Statement changes.
Cut from £2,000, to £1,000 from April 2023, and then to £500 from April 2024
- Income tax personal allowance and higher-rate threshold frozen until April 2028
- The 40% higher rate is now payable on income between £50,270 and £125,140
- The 45% additional rate is payable on income over £125,140 (meaning anyone earning £150,000 or more will pay an extra £1,200 in tax a year)
Capital Gains Tax exempt amount
- Annual exempt amount cut from £12,300 to £6,000 from April 2023. Cut again to £3,000 from April 2024
- Electric vehicles are no longer exempt from VED from 2025. Company car benefit rates for electric cars will increase but be limited to 1 percentage point per year for three years from 2025
- The VAT registration threshold will be frozen until March 2026
- National Living Wage will be increased to £10.42 from April 2023
- Main NICs thresholds are frozen until April 2028
- IHT thresholds are frozen until April 2028
Please feel free to contact F9 on 0800 169 3278 for advise on any of the above updates and ensuring your business is running as efficiently as possible.