Autumn Budget Statement 2023
The Chancellor of the Exchequer, Jeremy Hunt, presented his 2023 Autumn Statement to Parliament on 22 November and published supporting documents which you can read all 120 pages of by clicking on the link, should you have a spare few months until the next budget!
Most of the areas that affect our clients are unchanged or the same as previously announced, other than a reduction in National Insurance and an increase in the National Living Wage. See the tables below for a summary at a glance.
| Income tax | no changes | |
| tax-free allowance | £12,570 | 0% |
| 20% tax band | £37,700 | basic rate |
| 40% tax band | £50,270 | higher rate |
| 45% tax band | £125,140 | additional rate |
| National Insurance Contributions (NIC) | ||
| Employee class 1 | 10% | reduced from 12% from 06/01/2024 |
| Employer class 1 | 13.80% | no change |
| Self-employed class 2 | not required | reduced from £3.45/week |
| Self-employed class 4 | 8% | reduced from 9% from 06/04/2024 |
| Dividend tax | ||
| tax-free allowance | £500 | £2,000 – 2022/23. £1,000 – 2023/24 £500 – 2024/25 |
| Ordinary rate | 8.75% | |
| upper rate | 33.75% | total income over £50,270 |
| additional rate | 39.50% | total income over £125,140 |
| Corporation tax | ||
| profits up to £50k | 19% | |
| profits over £250k | 25% | |
| Profits between £50k and £250k gradual marginal increase | ||
| Director’s overdrawn loan account – corporation tax | ||
| 33.75% | ||
| VAT | ||
| threshold frozen | £85,000 | average £7,000 turnover/month |
| Capital Gains Tax | ||
| tax-free exemption | £3,000 | £12,000 – 2022/23. £6,000 – 2023/24 £3,000 – 2024/25 |
| Pension tax limits | ||
| annual allowance | £60,000 | |
| lifetime allowance | abolished from 2024/25 tax year | |
| National Living Wage | ||
| from April 2024 | £11.44 | aged 21 and over |
As we are fast approaching the end of 2023, before we know it the end of the 2023/24 tax year will be upon us on 5 April 2024. We would recommend thinking about checking any unused allowances and exemptions soon, to maximise your tax efficiency.
If you would like to discuss how any of the measures affect you personally, or if you need advice on your personal situation, please feel free to contact us at: enquiries@tenforwardfinance.co.uk or call us on 020 8446 6112
Please note, data correct at time of writing and may not always be applicable to your circumstances. Please check with us before acting on any of the above as we cannot be held responsible for any action taken without giving formal advice.
