01273 906 364 
janine@bean-count.comPersonal tax
National insurance rates cuts
Employees:
- The main employee NI rate will reduce by 2% to 10% from 6th Jan 2024 for those with salaries over £12,570 on pay up to £50,270.
Self Employed:
- Class 4 NICs for earnings from £12,570 up to £50,270 will reduce 1% to 8% from April 2024.
- Class 2 NICs scrapped from April 2024 (saving around £192 a year)
MTD ITSA introduced from April 2026
Making Tax Digital for Income Tax (MTD ITSA) is a new way of reporting property and self-employment income to HMRC.
Landlords and the self-employed earning over £30,000 income will need to file quarterly digital income returns.
If you have over £50k income (not profit!) this comes into effect from April 2026
If your income is between £30k and £50k it’ll start from April 2027.
if you’re a joint landlord there may be some scope to opt out of MTD ITSA.
As Accountants and Xero Partners we are fully up to speed with these changes and can do the quarterly file returns on your behalf. Please contact us for more info.
Pension lock
The State Pension will increase by 8.5% (£900 a year), under the triple lock system.
Corporations
National Minimum Wage
It will be increased for 16-17 year olds, 18-20 year olds, and apprentices.
- For 16-17 year olds, it will increase by 21.2%. The new hourly rate will be £6.40 an hour.
- For 18-20 year olds, it will increase by 14.8%. The new hourly rate will be £8.60 an hour.
- For apprentices, it will increase by 21.2%. The new hourly rate will be £6.40 an hour.
Pensions
Work to establish a pension pot for life scheme will be begin, giving workers the option to nominate the fund their employer pays into, which can follow them as they move throughout their working life.
R&D Tax relief
A "new, simplified" tax relief for research and development will combine the existing R&D Expenditure Credit and SME schemes.
Business rates
The business rate discount (75% off retail, hospitality and leisure business rates) will continue for another year.
Full expensing regime made permanent
It allows companies to claim 100% capital allowances for expenditure on qualifying plant and machinery, with tax relief of up to 25p for every £1 of qualifying expenditure.
Off Payroll working
The deemed employer is assessed for income tax, national insurance contributions (NIC) and the apprenticeship levy (where relevant) where they make a mistake in determination. It takes no account of taxes paid by the contractor or their personal service company.
From April 2024, a limited set-off for the taxes paid by the contractor or their personal service company will be introduced.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.