Q&A: Highlights of the Autumn Statement 2023

Chancellor of the exchequer Jeremy Hunt hailed the Autumn Statement 2023 as a tax cutting announcement to support people into work. Despite the 110 proposals there were essentially two key measures:

1. the cut to National Insurance for workers; and
2. to make full expensing a permanent measure for companies.

National Insurance

The main rate of class 1 National Insurance applicable to employees will be reduced from 12% to 10% from 6 January 2024. The reduction will apply to earnings between £12 570 and £50 270 so those with earnings more than the upper threshold will still pay 2% on the excess.

The 2% reduction is worth up to £754 a year. For someone on a salary of £35 400 this will equate to a reduction in their NIC of around £450 a year (or £37.50 a month).

The self-employed will benefit from a reduction to class 4 contributions from...