The Autumn Statement was delivered by Chancellor Jeremy Hunt on 22 November 2023, setting out the Government’s tax and spending plans for the year ahead. The Office of Budget Responsibility (OBR) expects the UK economy to grow by 0.6% this year, 0.7% in 2024 and 1.4% in 2025.
Key figures from the Autumn Statement are as follows:
National Insurance
The main rate of Class 1 National Insurance (paid by employees on earnings between £12,570 and £50,270) will be cut from 12% to 10% from 6 January 2024. The rate for earnings above £50,270 remains at 2%.
Class 2 National Insurance (paid by self-employed people earning more than £12,570) will be abolished from April.
Class 4 National Insurance (paid by self-employed people on profits between £12,570 and £50,270) will be cut from 9% to 8% from April. The rate for profits above £50,270 remains at 2%.
Minimum wage
The legal minimum wage, known officially as the National Living Wage, will increase from £10.42 to £11.44 per hour from April.
The new rate will now apply to those aged 21 and over (currently it applies to those aged 23 and over).
ISAs
The 2024/25 annual subscription limits for adult, lifetime and junior ISAs will remain at £20,000, £4,000 and £9,000 respectively.
Subscriptions to more than one of the same type of ISA within the same tax year and partial transfers of ISAs including subscriptions that tax year will be allowed from April.
Pensions
Consultations will commence on the “pot for life” option, whereby an employee can choose to have their contributions paid to the same pension plan when they change employers.
The Lifetime Allowance (LTA) will be abolished from April, as already planned.
State Pension
The state pension will increase by 8.5% in April, taking the full state pension from the current £203.85 per week to £221.20 per week (approximately £11,540 per year).
Please note that tax rates and allowances may differ in Scotland.
This article is for information only and should not be construed as advice or a recommendation. You should always seek independent financial advice prior to taking any action.
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