Autumn Statement 2023: BUFDG analysis

23 November 2023      Andrea Marshall, Tax Specialist

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

Julia – Employment Taxes, Payroll, Global Mobility

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