Autumn Statement Overview 2023

Well Mr Hunt did not disappoint, there was a surprise or two in his Autumn Statement. There was considerable pre-announcement speculation in the media about what he might, or might not, announce – and now we have the answers.

The market expectation is that interest rates have reached a peak. With inflation falling, Mr Hunt has a little more fiscal headroom than he was perhaps expecting a few months ago when he indicated that early tax cuts were not on his agenda.

Economic growth remains Mr Hunt’s priority, with his claim that his plans for the economy are working.

But what exactly are the changes outlined in his Autumn Statement, and how will this affect you? That’s what we’ll be looking at today. Read on for the key points from Mr Hunt’s Autumn Statement.

How Will This Affect Companies?

There have been 110 measures announced – not all of which Mr Hunt covered in his speech. There has been no change to the rate of Corporation Tax. The rate remains at 25% for companies that have taxable profits exceeding £250,000.

There have been changes to (and simplification of) the R&D Scheme. This should benefit small and medium-sized businesses.

‘Expensing relief’ for expenditure on plant and machinery was due to finish in 2025. However, it has been made permanent. According to Mr Hunt, this is the largest business tax cut in living memory.

If you’re concerned about how your business will be affected by these updates, speak to our expert Fulham-based team today. Whether you’re a small start-up or a mature business, we would be delighted to welcome you on board.

How Will This Affect Individuals?

First of all, there has been no change to income tax rates or thresholds. However, there has been a slight change to National Insurance.

If you’re self-employed, Class 2 will be abolished from April next year (2024). Also, Class 4 National Insurance will be reduced to just 8%. For employees, National Insurance will be cut from 12% to 10% from January 6th next year.

Although there was plenty of speculation, there have been no changes to Inheritance Tax.

From the 1st of April 2024, employees will see a rise in the national living wage. This will increase to £11.44 per hour for eligible workers aged 21 and over in the UK. This is a 9.8 increase.

At Haggards Crowther, we have worked with a wide range of clients, helping them manage their personal income, estate planning, tax and more. Enquire about our services today to see how we can help you.

Other Measures

Now we’ve discussed how businesses and individuals will be affected, let’s explore some of the other key points from the Autumn Statement:

• No increases in alcohol duty until August next year (at the earliest)
• Various business rates measures designed to aid small businesses
• Pensions – the triple lock will be honoured in full with an 8.5% increase in April next year
• Renter support – local housing allowance will be raised to the 30th percentile from April 2024
• The investment zones programme will be expanded to 10 years

Final Note

It is clear from the announcements that Mr Hunt is approaching matters in a very cautious manner. Hunt does not want markets rattled with rash moves. We have been there before, and it did not end well.

Economic stability and growth are his key targets. However, it’s clear that he does have an eye on the impending election.

Caution is always needed when considering tax changes. Although this could be viewed as vote grabbing, without caution, they may not survive an election.

Andrew Haggard FCA

Andrew founded Haggards Crowther with his brother in 2004 and took over as Managing Partner in May 2023. He has always been closely involved in client work, in particular providing high level strategic tax and structuring advice, business advice and supporting the technical and compliance teams.

As Managing Partner, he has focussed on growing the business and ensuring the firm upholds its core values of Quality of Service, Innovation, Collaboration and Integrity. These remain central to all that we do both internally and in serving our clients.

A Fulham resident for over 30 years Andrew is closely connected with the local business community and supporting many of them on their journeys. He is especially linked with fellow start-up entrepreneurs advising them on their growth strategies and optimal structures.

A passionate Fulham FC supporter, along with his two sons, Andrew rarely misses a game. He plays and coaches volleyball, something he has done since university in Edinburgh, and which offsets another of his passions: exploring the vast and diverse range of food that London’s restaurants have to offer.

He has a keen interest in many conservation projects especially in protecting endangered species of birds and actively supports the Mabula Project in South Africa. This charity supports the Southern Ground Hornbill, a charismatic species of cultural and ecological importance threatened by loss of habitat through the encroaching development of the savannah.