The Chancellor, Jeremy Hunt, gave his Autumn Statement in Parliament on Wednesday 22 November 2023.
Some of the key points are summarised below:
- For employees who earn between £12,570 and £50,268 they currently pay National Insurance of 12% on earnings and 2% on earnings after that.
- On the earnings, where National Insurance is currently levied at 12%, this will be cut to 10% from 6 January 2024.
- Class 2 flat rate weekly contributions of £3.45, which are currently paid on self employment earnings above £12,571 per annum, is being abolished.
- Class 4 National Insurance contributions, also levied on the self-employed, is charged on all earnings between £12,571 and £50,270 will be cut from 9% to 8%.
- The State Pension is going to be increased from 6 April 2024 to £221.20 per week for the full new flat rate State Pension (for those who reach State Pension age after 6 April 2016) and £169.50 per week for the old basic State Pension (for those who reach State Pension age before 6 April 2016).
- There are also changes to the minimum wage. The national living wage for employees aged over 23 increases from £10.42 per hour to £11.44 per hour.
- Those aged 21 to 22 will be eligible for the national living wage for the first time so they will receive £11.44 per hour, an increase from £10.18 per hour.
- The national minimum wage increases for those aged 18 to 20 from £7.49 per hour to £8.60 per hour.
- The national minimum wage for under 18s will rise from £5.28 per hour to £6.40 per hour.
- The apprentice rate goes up from £5.28 per hour to £6.40 per hour – this applies to people aged under 19 or people over 19 in the first year of their apprenticeship.
For the time being, the rates of income tax and the level at which one starts paying tax remain the same, as does the rate of VAT.
If you have any queries in connection with any of the changes in the Autumn Statement, please do not hesitate to contact Ann Coleman FCA.