December Newsletter

Nov 24, 2023 | Newsletters | 0 comments

AUTUMN STATEMENT 2023

Jeremy Hunt led this year’s Autumn Statement on 22 November. Here are some of the key points you may have missed:

THE NATIONAL MINIMUM WAGE

From 1 April 2024, the National Living Wage will be £11.44 (an increase of 9.8%), and for the first time, the National Living Wage extends to 21 and 22-year-olds.

All the changes are below:

April 2024:

23 and over: £11.44

21 to 22: £11.44

18 to 20: £8.60

Under 18s: £6.40

Apprentice: £6.40

April 2023 (The current rate):

23 and over: £10.42

21 to 22: £10.18

18 to 20: £7.49

Under 18s: £5.28

Apprentice: £5.28

From 6 January 2024:

  • The main rate Class 1 employee National Insurance contributions (NICs) will be cut from 12% to 10%.

From April 2024:

  • For Class 4 self-employed NICs will be reduced from 9% to 8%.
  • For Class 2 self-employed NICs will be abolished, with the aim to update the existing tax system.
  • Universal credit will be increased by 6.7%. Local Housing Allowance rates will also be unfrozen and increased to 30% of local rates.
  • State pension payments will increase by 8.5%
  • The ‘full expensing’ tax break policy, which allows companies to deduct their investments against their corporation tax, will be made permanent.
  • Households that live near new pylon lines will get up to £1,000 off their energy bills for the next ten years.
  • The Work Capability Assessment will be reformed, as well as increased funding to support those who are unemployment and deemed unfit to work.
  • Through assessments, those who are deemed fit to work but refuse employment will lose access to their benefits.

OTHER KEY POINTS INCLUDE:

  • The Alcohol Duty will be frozen until August 2024.
  • The business rates relief discount for retail, hospitality, and leisure firms (which allows them to receive up to 75% off business rates bills) has been extended for another year.
  • The independent Office for Budget Responsibility (OBR) predicts the economy to grow by 0.6% this year, 0.7% next year and 1.4% in 2025.
  • Changes to the Making Tax Digital for Income Tax scheme, such as simplifying the rules and regulations for taxpayers, which will be phased in from April 2026.
  • Funding of £4.5 billion will be provided to manufacturing sectors to attract investment.

WHY ARE CASH FLOWS IMPORTANT TO YOUR BUSINESS?

Cash flows are important to use all year round, but especially useful when entering the New Year. No matter when your business year end is, going into the New Year with clear understanding of the financial position of your business can set you up for a more profitable 2024.

Some businesses may benefit more from using cash flow forecasts depending on the size and nature of the business. However, no matter the size, all businesses can run into cash flow problems.

Regularly reviewing your financial position through profit and loss statements and yearly budgets will place your business in the best position possible.

If you would like help understanding your business finances through cash flow forecasts, or other financial forecasting, contact us today.

ROYAL MAIL POSTAGE DATES

Do you tend to send your Christmas presents last minute?

The last dates for Royal Mail’s guaranteed Christmas delivery are below:

Monday 18 December – 2nd class & 2nd class signed for  

Tuesday 19 December – 1st class & 1st class signed for

Wednesday 20 December – Royal Mail Tracked 48

Thursday 21 December – Royal Mail Tracked 24

Friday 22 December – Special Delivery Guaranteed

To find out the other dates for overseas delivery, visit: Get ready for Christmas 2023 | Royal Mail Group Ltd

IMPORTANT DECEMBER/JANUARY DATES:

DateWhat’s Due
01/12/23Corporation tax payment for the year to 28/02/23 (unless quarterly instalments apply)
19/12/23Employer PAYE & NIC deductions, and CIS return and tax, for the month to 05/12/23 (due 22/12/23 if you pay electronically)
30/12/23Submission of 2023/24 self-assessment return (if the taxpayer wants HMRC to collect the tax owed through their wages or pension)
01/01/24Corporation tax payment for the year to 31/03/23 (unless quarterly instalments apply)
19/01/24Employer PAYE & NIC deductions, and CIS return and tax, for the month to 05/01/24 (due 22/01/24 if you pay electronically)
31/01/24Submission of 2023/24 self-assessment return