The much awaited Autumn Statement was announced on the 17th November.
And whilst we were pleased not to see any announcements about Insurance Premium Tax (IPT) being increased from the current 12%, the Autumn Statement certainly included other wide ranging changes. We’ve highlighted some of the headline announcements that your business may want to be aware of below.
Autumn Statement Announcements
Business Rates Support
A range of announcements were made relating to Business Rates, the full details of which can be found on the gov.uk website.
According to the official government announcement, the package of support announced is worth £13.6 billion in total.
A review of the Energy Bill Relief Scheme
Currently set to run until 31 March 2023, the Energy Bill Relief Scheme (EBRS) was introduced to support businesses with the cost of energy.
The Autumn statement included an announced that the scheme will be reviewed to determine what support will be given to non-domestic energy customers past this point. Findings are set to be published by 31st December 2022.
Increases to the National Living Wage (NLW) and the National Minimum Wage (NMW)
The NLW will rise to £10.42 an hour for those over 23 from the 1st April. Meaning higher costs for employers to meet these rates.
Whilst increasing the NLW is always good for the individual, we recognise that this will particularly impact upon the costs of small businesses.
VAT registration & deregistration thresholds
The level at which businesses must register for and pay VAT will be maintained at the current level of £85,000 for a further 2 years from 1 April 2024.
This could see more businesses having to register to pay VAT as the threshold will not be rising in line with inflation.
Freezing National Insurance Contributions
A freeze will be put on the level at which employers start to pay National Insurance contributions for their employers. The level will remain at £9,100 from April 2023 until April 2028.
Changes to Dividends Allowance
For those who receive dividends, there is a yearly dividend allowance meaning you only pay tax on any dividend income above the dividend allowance.
The current £2,000 dividend allowance will be reduced to £1,000 from April 2023, and to £500 from April 2024.
Read the Autumn statement in full
Of course, these are just some of the announcements made in the Autumn Statement. The full Autumn Statement documents can be found on the gov.uk website allowing you to read the announcements made in full.
With rising taxes and other pressures such as high inflation, rising interest rates and high energy costs, at Anthony Jones, we understand that these are incredibly testing and difficult times for our insurance buyers. We remain, as ever, committed to supporting all our current and prospective customers with the best insurance advice.
Anthony Jones Director, Mark Stevenson, adds ‘Our role as insurance brokers is to help businesses protect assets and people with affordable necessary insurance protection. The Autumn statement changes nothing in the way we do business with our customers. We are committed to providing expert advice on insurance buying decisions as we always do. Whilst we are pleased that there is support on business rates our concern remains on the environment our customers have in which to grow and prosper.’