On November 22nd, chancellor Jeremy Hunt delivered the autumn statement 2023 to the House of Common. The announcement focused on reducing debt, cutting tax, and backing British businesses.
During his presentation, the chancellor introduced a several changes in attempt to grow the economy and reduce debt.
Today, we look at these changes and explain what they mean for accountants and business owners.
Merged R&D tax relief scheme
Last Tuesday, Jeremy Hunt announced plans to improve and simplify the merged R&D scheme that was introduced this year.
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The proposed credit rate until the merged scheme is 20 per cent, in line with the current RDEC scheme. The new R&D scheme will be subject to corporation tax and benefits of the relief will be vulnerable to future increases of corporation tax rates.
This merged scheme will take effect for accounting periods that commence on or after April 2024.
Reduced national insurance contributions
From January 6th, 2024, employee National Insurance contributions will be reduced from 12 per cent to 10 per cent in a bid to boost employee pay packets and provide relief from the soaring cost of living.
With less than 40 days to go, it is important that in-house and outsourced accountants work quickly to amend systems to reflect the change.
This change applies to all earning between the primary earning threshold and the upper earning limit.
End of Period statement removed
The chancellor also revealed plans in the autumn statement 2023 to remove the End of Period statement. Currently, the End of Period statement is provided to ensure information is correct and complete as part of the Making Tax Digital submission.
However, the End of Period statement will no longer be a requirement for businesses to simplify the year end processes and reduce admin for accountants and business owners.
Next steps
As an accountant you must now research and understand the autumn statement key takeaways to best advise clients about the relevant changes. It is important to understand the implications of these changes and how they will impact clients.
If you need help maintaining accountancy compliance, get in touch with the team at React Accountancy today.
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At React Accountancy, we provide practical and value for money accounting services to our clients. From large businesses to independent outfits, we cover everyone.
With a wealth of industry knowledge and experience, we can work closely with you to ensure all your needs are met and our services are tailored to your specific needs.
We believe in providing a no jargon accounting service and have an open and honest relationship with our clients. Our accountants are dedicated to helping you make the most of your money.
From tradespeople to small businesses, and everything in between, we fully understand the complexities of accountancy and that’s why we offer a wide range of accounting service.
To find out more about how we can help, get in touch with the expert team today.
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Related articles
https://reactaccountancy.co.uk/your-end-of-year-accounts-checklist/
https://reactaccountancy.co.uk/how-to-prepare-your-business-for-the-new-year/
https://reactaccountancy.co.uk/how-to-check-if-you-need-to-file-a-tax-return-2023/
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