BUFDG members can find BUFDG's full analysis of the Chancellor's Autumn Statement 2023 here.
The tax(ish) headlines are:
- Employee NIC cut – primary rate of employee NIC (Class 1) reduces from 12% to 10%
- Self-employed NIC cut - Class 2 NIC abolished (although still available voluntarily) and Class 4 reduced to 8% (was 9%)
- Off-payroll working (IR35) – tax paid by worker’s intermediary can be offset against PAYE taxes where non-compliance found
- National Living Wage rates increase to £11.44 per hour (from £10.42) and age threshold reduces to 21 (from 23)
- National Minimum Wage increases across the board for 18-21 year olds and apprentices
- Employee hours worked may be a required field on Real Time Information (RTI) returns
- Clearer guidance and support promised on Occupational Health best practices
- Employer NIC relief for veterans is extended for an additional year
- VAT relief on the installation of energy savings materials to include more types of materials and relevant charitable purpose buildings to qualify for the relief
- Technical clarifications of the rules for theatres, orchestras, museums and galleries cultural tax reliefs
- Merger of R&D Expenditure Credit (RDEC) and SME schemesto go ahead from April 2024
- Capital allowances — expensing for companies investing in plant and machineryto be made permanent
- Pillar 2 – “Undertaxed Profit Rule” to apply to accounting periods beginning on or after 31 December 2024
- Extension of the list of heavy oil and certain bioblends used for heating, that qualify for a rebate of hydrocarbon oil duties
- Introduction of 5 more Free Zones in England and Wales, and extension of the programme and applicable tax reliefs from five to ten years
- Construction Industry Scheme (CIS) gross payment applications will take VAT compliance into account
- Car and van benefits unchanged for taxable benefit in kind purposes
- Criminal offence and director disqualification for Promotors of Tax Avoidance Schemes
- Tax fraud ‘egregious’ offences will have sentences doubled
As always, please get in touch…
Andrea - Corporate Tax, VAT/GST, Digital Taxes andrea@bufdg.ac.uk
Julia – Employment Taxes, Payroll, Global Mobility julia@bufdg.ac.uk
23 November 2023 
Andrea Marshall, Tax Specialist
