Key points

Employed

• The Class 1 National Insurance rate will reduce from 12% to 10% with effect from 6 January 2024.
• Individuals with only PAYE income over £150,000 will not be required to file self-assessment tax returns from 2024/25. Those with a pension annual allowance charge will no doubt need to remain within the regime.

Self-employed

• Class 2 National Insurance will be abolished next April with a percentage point reduction in Class 4 National Insurance to 8%.

Companies

• The 100% full expensing relief for qualifying capital expenditure will be made permanent.
• The SME R&D amendments will take effect from April 2024.

Investors

• The existing sunset clause for the EIS and VCT schemes will be extended from 6 April 2025 until 6 April 2035.

Pensioners

• The state pension will increase by 8.5% in April 2024.

Other announcements

• Small business rates are frozen with retail hospitality and leisure relief extended.
• The national living wage will increase to £11.44 an hour, with the age threshold lowered from 23 to 21 years old from April 2024.
• The national minimum wage will increase to £8.60 for 16-17 year olds and £6.40 for apprentices.
• The investment zones programme and freeport tax reliefs will be extended from 5 to 10 years.
• HGV Levy and Vehicle Excise Duty will be frozen at 2023-24 rates for 2024-25.