Autumn Statement 2023

Autumn Statement 2023: What It Means for You and Your Business

The Autumn Statement 2023 is the first major fiscal event since the UK left the EU and the COVID-19 pandemic. It will include significant changes to the tax system, public spending, and economic outlook.

The Chancellor of the Exchequer, Jeremy Hunt, will present the Autumn Statement 2023 on Wednesday, 22 November 2023. The speech will affect your take-home pay and household budget, as well as how much will be spent on key public services.

Some of the key topics and issues that are likely to be addressed are:

• Corporation tax. The main rate of corporation tax will increase from 19% to 25% from April 2023, but there will be a small profits rate of 19% for businesses with profits of £50,000 or less, and a tapering system for businesses with profits between £50,000 and £250,000.

• Income tax and national insurance. The personal allowance and the higher rate threshold will be frozen until April 2026, meaning that more people will pay higher rates of income tax as their incomes rise. There will also be a 1.25 percentage point increase in national insurance contributions for employees, employers, and the self-employed from April 2023, to fund health and social care.

• VAT. The VAT rate for the hospitality and tourism sectors will be reduced to 5% until 30 September 2023, and then to 12.5% until 31 March 2023. The government may announce whether it will extend the reduced VAT rate beyond 31 March 2023, or revert it back to 20%.

• Business rates. The government has provided 100% business rates relief for eligible retail, hospitality, and leisure properties in England for the 2020-21 and 2021-22 financial years. The government may announce whether it will extend the business rates relief beyond 31 March 2023, or introduce a new system of business rates relief.

• Capital gains tax, inheritance tax, pensions and savings. The government has frozen the annual exempt amount for capital gains tax, the nil-rate band for inheritance tax, and the lifetime allowance for pensions until April 2026. The government may announce changes to the rates or rules of these taxes, reliefs, and allowances.

The Autumn Statement 2023 will also provide an update on the state of the UK economy and its prospects for growth, inflation, employment, and productivity. It will also take into account the impact of the Brexit transition and the trade deal with the EU on the UK economy and the public finances.

As your accountant, I will help you understand what the Autumn Statement 2023 means for you and your business, and how you can take advantage of the opportunities or mitigate the risks. I will also help you plan ahead and adjust your tax planning, budgeting, and forecasting accordingly. I will also be available to answer any questions or concerns you may have, and provide you with reassurance and support.