On the 22nd November, the Government announced their Autumn Statement.
We have reviewed the Governments Overview of Tax Legislation and Rates from the Statement and believe the points below are the only ones likely to affect our clients directly.
INCOME TAX: most rates, allowances and thresholds remain unchanged.
The tax-free dividend allowance will reduce from £1000 for the current 2023-24 tax year, to £500 for 2024-2
NATIONAL INSURANCE:
Class 1, for employees, is being reduced from 12% to 10% with effect from 6th January 2024. Employers’ NI contributions remain unchanged.
Class 2, for the self employed has been removed from 6th April 2024.
Class 4, also for the self employed has been reduced from 9% to 8% from 6th April 2024.
CAPITAL GAINS TAX: allowances for individuals are reducing from £6000 in 2023-24 to £3000 in 2024-25 (for Trusts, those allowances are halved.)
CORPORATION TAX: remains unchanged for the year commencing 1st April 2024. For profits below £50,000 the tax rate remains 19%. Above £50,000 profits the tax rate will gradually increase up to 25% at profits of £250,000 or more.
RESEARCH & DEVELOPMENT TAX CREDITS for small & medium enterprises are being combined into the scheme for larger businesses.
MINIMUM WAGE The minimum wage will increase from to £11.44 per hour from 6th April 2024.
